UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION

                    Washington, D. C.  20549


                           FORM 10-Q


      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
              THE SECURITIES EXCHANGE ACT OF 1934



For The Period Ended      July 4, 1997      Commission File Number 0-14759
     



                 KLLM TRANSPORT SERVICES, INC.       
     (Exact name of registrant as specified in its charter)


                 Delaware                               64-0412551  
     (State or other jurisdiction of                (I.R.S. Employer
     incorporation or organization)                Identification No.)



           Post Office Box 6098
           Jackson, Mississippi                          39288    
  (Address of principal executive offices)             (Zip Code)


 Registrant's telephone number, including area code    (601) 939-2545
       


      Indicate by check mark whether the registrant (1) has
filed all  reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding
12 months, and (2) has been  subject to such filing
requirements for the past 90 days.
                                                             
         Yes  X       No      
                                               




      4,355,922 Common Shares were outstanding as of July 4,
1997.

  <PAGE>
                           
                       KLLM TRANSPORT SERVICES, INC. 
                            AND SUBSIDIARIES
                                      
                                     
                                  INDEX
                                           


                                                             
                                                                Page
                                                                Number
                                                             
                         

    PART I.  FINANCIAL INFORMATION:

       Item 1.  Financial Statements

             Condensed Consolidated Balance Sheets
              July 4, 1997 (Unaudited) and January 3, 1997         1

             Consolidated Statements of Earnings (Unaudited)
              Thirteen weeks and Twenty-six weeks  ended
              July 4, 1997 and June 28, 1996                       2
                
             Condensed Consolidated Statements of Cash Flows
              (Unaudited) Twenty-six weeks ended July 4, 1997 
               and June 28, 1996                                   3

             Notes to Condensed Consolidated Financial
              Statements (Unaudited)                               4

       Item 2.  Management's Discussion and Analysis of
             Financial Condition and Results of Operations         5

    PART II.  OTHER INFORMATION:

       Item 6.  Exhibits and Reports on Form 8-K                   7


<PAGE>

                     KLLM TRANSPORT SERVICES, INC
                          AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>

<S>                                        <C>              <C>
                                            July 4,          January 3,
                                            1997             1997
                                            -------          ---------
                                          (Unaudited)        (Note)
                                                  (In Thousands)

ASSETS
Current assets:
     Cash and cash equivalents              $2,334            $2,874
     Accounts receivable                    25,453            22,684
     Inventories - at cost                     646               891
     Prepaid expenses:
          Tires                              4,323             4,282
          Other                              2,159             1,365
     Deferred income taxes                   3,325             3,325
                                           --------           -------

               Total current assets         38,240            35,421

Property and equipment                     179,254           179,613
     Less accumulated depreciation         (62,538)          (57,738)
                                           ---------         --------
                                           116,716           121,875

Intangible assets, net - Note C                248             2,259

Other assets                                   262               339
                                           ----------        ---------

                                          $155,466          $159,894
                                          ============      ==========
                                    

                    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Notes payable to banks                $     --           $3,598
     Accounts payable and accrued expenses   17,726           16,414
     Current maturities of long-term debt
       and capital leases                     4,872            4,848
                                           -----------       ---------
          Total current liabilities          22,598           24,860

Long-term debt and capital leases, less
  current maturities                         48,479           49,747

Deferred income taxes                        18,787           18,787

Stockholders' equity:
     Preferred Stock, $.01 value; 
     authorized 5,000,000 shares; none 
     issued Common Stock, $1 par value; 
     10,000,000 shares authorized;
     issued shares - 4,558,754 in 1997 
     and 4,558,754 in 1996; outstanding 
     shares - 4,355,922 in 1997 and 
     4,344,955 in 1996.                       4,559            4,559
     Additional paid-in capital              32,865           32,811
     Retained earnings                       30,389           31,453
                                             --------         -------
                                             67,813           68,823
     Less Common Stock in Treasury, 
       at cost, 202,832 shares
       in 1997 and 213,799 shares in 1996.   (2,211)          (2,323)
                                            ---------         --------
          Total stockholders' equity         65,602           66,500
                                            ---------         --------
                                           $155,466         $159,894
                                           ===========      ==========

</TABLE>


Note: The balance sheet at January 3, 1997 has been derived
from the audited financial statements at the date indicated, but does 
not include all of the information and footnotes required by generally
accepted accounting principles for complete financial
statements.

See accompanying notes.



<PAGE>

                         KLLM TRANSPORT SERVICES, INC.
                               AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF EARNINGS
                                     (Unaudited)

<TABLE>


                               Thirteen Weeks Ended    Twenty-Six Weeks Ended
                                July 4,   June 28,       July 4,   June 28,
                                 1997       1996           1997      1996
                               ---------------------   ----------------------
                                 (In Thousands, Except Per Share Amounts)

<S>                            <C>        <C>            <C>        <C>
OPERATING REVENUE FROM 
TRUCK LOAD OPERATIONS          $62,593    $64,267        $123,211   $125,277

OPERATING EXPENSES:
Salaries, wages and
fringe benefits                 19,050     18,471          38,143     37,067
Operating supplies
and expenses                    15,418     17,865          31,557     35,754
Insurance, claims,
taxes and licenses               3,498      3,201           7,535      6,118
Depreciation and
amortization                     5,206      5,384           10,431    11,024
Purchased transportation
and equipment rent              13,899     14,225          26,829     27,444
Other                            2,593      2,569           5,269      4,800
(Gain) loss on sale of
revenue equipment                  182       (140)            349       (344)
                                --------------------       ------------------
TOTAL OPERATING EXPENSES FROM 
TRUCK LOAD OPERATIONS           59,846     61,575          120,113    121,863
                                --------------------       ------------------

OPERATING INCOME FROM TRUCK 
LOAD OPERATIONS                  2,747      2,692           3,098      3,414

OPERATING REVENUE FROM RAIL 
CONTAINER OPERATIONS             1,170      2,843           3,319      5,569
OPERATING EXPENSES               1,928      2,800           4,128      5,641
RESTRUCTURING CHARGE - Note C    1,906         0            1,906        0
                                -------------------        ------------------

OPERATING INCOME (LOSS) FROM 
RAIL CONTAINER OPERATIONS       (2,664)       43           (2,715)      (72)

Interest and other income          (17)      (12)             (43)      (18)
Interest expense                 1,059      1,201           2,115     2,469
                                --------------------       ------------------
                                 1,042      1,189           2,072     2,451
                                --------------------       ------------------
EARNINGS (LOSS) FROM CONTINUING 
OPERATIONS BEFORE INCOME TAXES    (959)     1,546          (1,689)      891
Income taxes                      (350)       587            (625)      338
                                ---------------------      ------------------

NET EARNINGS (LOSS) FROM 
CONTINUING OPERATIONS             (609)       959          (1,064)      553
LOSS FROM OPERATIONS OF 
DISCONTINUED DIVISION  
(Net of tax expense (benefits) 
of $0 in 1996 and ($72) and 
($179) for the 1995 thirteen 
week and twenty six week periods, 
respectively)INCOME (LOSS) OF
DISCONTINUED DIVISION (Net of 
tax expense (benefit) of ($9) 
and $4 for the thirteen-week
and twenty-six-week periods, 
respectively)                       0        (14)              0         6
                               -------------------            -------------

NET EARNINGS (LOSS)             ($609)       945             ($1,064)   559
                               ====================          ===============

EARNINGS (LOSS) PER SHARE:
From Continuing Operations     ($0.14)      0.22             ($0.24)    0.13
From Operations of 
Discontinued Division
From Discontinued Division        0            0                 0        0
                               --------------------          -----------------

NET EARNINGS PER COMMON SHARE  ($0.14)      0.22             ($0.24)    0.13
                               ====================          =================

</TABLE>

See accompanying notes.

<PAGE>
                         KLLM TRANSPORT SERVICES, INC.
                                 AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


<TABLE>


                                              Twenty-Six Weeks Ended
                                              July 4,         June 28,
                                                1997           1996
                                              ---------- ------------
                                                  (In Thousands)

<S>                                           <C>             <C>
NET CASH PROVIDED BY OPERATING
     ACTIVITIES                            $9,885          $12,889

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property and equipment     (9,890)         (8,984)
   Proceeds from disposition of equipment   4,208           2,625
                                           ---------       ---------
NET CASH FLOWS USED IN INVESTING
      ACTIVITIES                           (5,682)         (6,359)

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from exercise of stock options     99             427
   Net increase (decrease) in borrowings under
     revolving line of credit               2,000          (3,000)
   Repayment of long-term debt and capital
     leases                                (3,442)         (5,318)
   Net change in borrowings under working
     capital line of credit                (3,400)          2,317
NET CASH FLOWS USED IN
     FINANCING ACTIVITIES                  (4,743)         (5,574)
                                          ----------       ---------

Net Increase (Decrease)  in Cash and
     Cash Equivalents                        (540)            956
Cash and Cash Equivalents at Beginning
     Of Period                              2,874              0
                                          ----------       ----------
Cash and Cash Equivalents at End
     Of Period                             $2,334             $956
                                          ==========       ==========


</TABLE>


See accompanying notes.


<PAGE>
                  KLLM TRANSPORT SERVICES, INC
                        AND SUBSIDIARIES
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          (Unaudited)
                                
                                
                                
      NOTE A-  BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance
with generally accepted accounting principles for interim
financial information.  They have been prepared in
accordance
with the instructions to Form 10-Q and Article 10 of
Regulation S-X and accordingly, do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements.  In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. 

     In February 1997, the Financial Accounting Standards
Board issued Statement No. 128, Earnings per Share,
which is required to be adopted on December 31, 1997.  At
that time, the Company will be required to change the
method currently used to compute earnings per share and to
restate all prior periods.  Under the new requirements for
calculating earnings per share, the dilutive effect of stock
options will be excluded.  The impact of Statement 128 on
the calculation of earnings per share is not expected to be
material.

NOTE B- FISCAL YEAR 

     The Company has adopted a fiscal year-end on the Friday
nearest December 31.  Accordingly, the second 
quarter of 1997 ended on Friday, July 4, 1997.  

NOTE C - RAIL CONTAINER RESTRUCTURING CHARGE

     During the quarter ended July 4, 1997 the Company
completed its plan to exit the rail container market.  A
one-time restructuring charge of $1,906,000 was recorded for
the write off of  intangible assets pertaining to the rail
container operation and the accrual of certain expenses
related to the subleasing of  rail containers and exiting
this market. 


NOTE D- COMMITMENTS AND CONTINGENCIES
    
     The Company is involved in various claims and routine
litigation incidental to its business.  Management is
of the opinion that the outcome of these matters will not
have a material adverse effect on the consolidated financial
position or results of consolidated operations of the
Company.

     The Company has entered into heating oil (diesel fuel)
swap agreements in order to hedge its exposure to price
fluctuations.  At July 4, 1997, the Company had
approximately 11% of its remaining 1997 anticipated fuel
requirements under  swap agreements which expire in January 1998.  Gains
and losses on  such agreements are recognized in
operating expenses as part of fuel cost over the hedge
period.
<PAGE>
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
               

Liquidity and Capital Resources

     KLLM Transport Services, Inc.'s primary sources of
liquidity are its cash flow from operations and its existing
credit agreements.  During the twenty-six weeks ended July
4, 1997, the Company generated $9.9 million in net cash
provided from operating activities.

     Capital resources required by the Company during the
first half of 1997 of $5.7 million were approximately
$.7 million  less than  the same period last year.  This
reduction is primarily a result of the Company's decision to
curtail growth of the fleet and focus attention on improving
utilization and profitability in the core trucking business. 
Net capital expenditures for the remainder of 1997, primarily
for revenue equipment, are expected to be approximately
$13.9 million. 

     The Company has a $50 million unsecured revolving line
of credit with a syndication of banks.  Borrowings
of $32 million were outstanding at July 4, 1997.  Under the
terms of the agreement, borrowings bear interest at (i) the
higher of prime rate or a rate based upon the Federal Funds
Effective Rate, (ii) a rate based upon the Eurodollar rates,
or (iii) an absolute interest rate as determined by each
lender in the syndication under a competitive bid process at
the Company's option.  Facilities fees from .25

percent to  % per annum
are charged on the unused portion of this line.  

     At July 4, 1997, the aggregate principal amount of the
Company's outstanding long-term indebtedness was
approximately $53.4 million.  Of this total outstanding,
$2.5 million was in the form of 10.2% notes due July 15,
1998, $14.3 million in the form of 9.11% senior notes due June 15,
2002, $32.0 million consisted of the revolving line of
credit due April 7, 1999, and $4.6 million in principal was
related to capital leases with varying maturities.     

     Working capital needs have generally been met from net
cash provided from operating activities.  The
Company has $4,000,000 in an unsecured working capital line
of credit with a bank, all of which was available at July
4, 1997.  Interest is at a rate based upon the Eurodollar
rates with facility fees at 25

% per annum on the unused
portion of the line.
     
     The Company anticipates that its existing credit
facilities along with cash flow from operations will be
sufficient to fund operating expenses, capital expenditures,
and debt service.


Results of Operations

     Operating revenue from truckload operations decreased
2.6% for the second quarter of 1997 and 1.6%  for the
first six months of 1997 compared to the comparable periods
of 1996.  The decrease in truckload operating revenue 
in the first half of 1997 was due to a decrease in the
transportation brokerage and trailer on flatcar services
partially offset by an increase in truck fleet operations.  Although
revenue per total mile decreased by 0.2% for the second
quarter and increased by 0.5% for the first half of 1997 when
compared to the same period last year, revenue per mile
excluding fuel surcharge increased by 0.2% for both periods.  The
empty mile percentage improved for both the second quarter
and the first half of 1997 when compared to 1996.  Average
miles per truck increased by approximately 2% for both
the second quarter and the first half of 1997 when compared
to 1996.

     The operating ratio within the truckload operation
improved from 95.8% to 95.6% for the second quarter of
1997 compared to the same period in 1996.  For the first
half of 1997 compared to the same period in 1996, the
operating ratio within the truckload operation increased
from 97.3% to 97.5%.  The Company has continued to increase
the use of owner-operated tractors and has decreased the
company-owned fleet.  This change in the mix of the fleet
affects the comparability of components of operating
expenses by increasing purchased transportation and
decreasing wages, depreciation, and various operating supplies and
expenses.  Purchased transportation also reflects the
significant reductions in transportation brokerage and rail operations. 
Driver wages were increased at the start of 1997 to offset
cancellation of reimbursement of certain expenses to
drivers.  The effect was to increase wages and decrease
operating supplies $1.2 million compared to the second quarter of 1996
and $2.3 million compared to the first half of 1996.
Operating supplies ans expenses in the second quarter were
also affected by a small decrease in fuel prices and the
benefit of cost reduction efforts.  During the second
quarter the Company closed two maintenance facilities to
eliminate excess capacity.
  

     Insurance and claims costs which were high in the first
quarter as a result of our reassessment of reserving and
claims management practices were lower in the second quarter
of 1997.  However,  insurance costs remain .5% of
revenue higher in the  second quarter of 1997 than the
second quarter of 1996.


     Due to the quantity of equipment available in the used
equipment market, the proceeds on equipment sold
during the second quarter and the first half of 1997 were
less per unit than anticipated resulting in a loss on the
sale of revenue equipment. 


     As a result of the foregoing, net income from
continuing truckload operations increased by $165,000 or
18.0% for the second quarter and increased by $15,000 or 2.4% for
the first half of 1997 from the comparable periods of 1996. 
Earnings per share from continuing truckload operations
increased from $.21 to  $.25 in the second quarter and from
$.14 to $.15 in the first half of 1997 compared to the same
periods in 1996.  

     During the second quarter the Company completed its
plan to exit the rail container operation  because of the
Company's focus on traditional truckload operations.  The
Company anticipates being out of the rail container
operations by the end of the third quarter of 1997 with no
additional charges pertaining thereto.  Operating revenue
from the rail container operation was significantly less than in
1996 for both the second quarter and the first half of 1997.

Closure of the container operation has resulted in high
operating costs and a restructuring charge in the second
quarter of 1997.  As a result the effect of  the rail container
operation on earnings per share was a loss of  $0.39 per
share for the second quarter and for the first half of 1997.


Factors Affecting Future Performance

     The Company's future operating results may be affected
by various trends and factors which are beyond the
Company's control.  These include adverse changes in demand
for trucking services, availability of drivers and fuel
prices.  Accordingly, past performance should not be
presumed to be an accurate indication of future performance.


Seasonality

     In the transportation  industry, results of operations
generally show a seasonal pattern because customers reduce
shipments during and after the winter holiday season with
its attendant weather variations.  The Company's operating
expenses have historically been higher in the winter months
primarily due to decreased fuel efficiency and increased
maintenance costs in colder weather.


     The foregoing statements contain forward-looking
statements which involve risks and uncertainties and the
Company's actual experience may differ materially from that
discussed above.  Factors that may  cause such a difference
include, but are not limited to, those discussed in "Factors
Affecting Future Performance" as well as future events that
have the effect of reducing the Company's available cash
balances, such as unanticipated operating losses or capital
expenditures related to possible future acquisitions. 
Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management's
analysis only as the date hereof.  The Company assumes no
obligation to update forward-looking statements.


<PAGE>
PART II:  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

     There were no Form 8-K filing  for the quarter ended
July 4, 1997.  
            


<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.



                        KLLM TRANSPORT SERVICES,INC.
                                                 
                               (Registrant)       
<TABLE>

<S>                              <C>         
Date   August 18, 1997           s/Steven K. Bevilaqua    
                                   Steven K. Bevilaqua
                                   President and Chief Executive Officer



Date   August 18, 1997                                       
                                                             
                                   
                                  s/Steven L. Dutro    
                                    Steven L. Dutro
                                    Vice President-Finance and Acting
                                    Chief Financial Officer
                                          
</TABLE>
    
<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.




                            KLLM TRANSPORT SERVICES, INC.
                                                 
                                    (Registrant)       

<TABLE>

<S>                                  <C>
Date      August 18, 1997             /s/ Steven K. Bevilaqua              
                                          Steven K. Bevilaqua    
                                          President and
                                          Chief Executive Officer



Date      August 18, 1997            /s/ Steven L. Dutro                  
                                         Steven L. Dutro    
                                         Vice President-Finance and Acting
                                         Chief Financial Officer

</TABLE>