----

----

| Texas(State      or other jurisdiction ofincorporation      or organization)                                   |   | 75-1301831(IRS      Employer Identification No.)                                       |
|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
|  1145      Empire Central PlaceDallas,      Texas 75247-4305(Address      of principal executive offices) |   |  (214)      630-8090(Registrant's      telephone number,including      area code) |

| Indicate      by check mark whether the registrant (l) 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 (or for such shorter period that the      registrant was required to file such reports), and (2) has been subject to      such filing requirements for the past 90 days.   ý      Yes     o  No |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Large      accelerated filer   o | Accelerated      Filer   ý | Non-accelerated      filer   o | Smaller      Reporting Company   o |
|--------------------------------------------------|-------------------------------------------|------------------------------------------|----------------------------------------------|

|   | Class                              |   | Number      of Shares Outstanding |   |
|--------|------------------------------------|--------|-----------------------------------|--------|
|   | Common      stock, $1.50 par value |   | 16,726,906      at June 30, 2008  |   |

----

INDEX

|         | PART I  Financial      Information                                                                            | Page      No. |
|--------------|--------------------------------------------------------------------------------------------------------------------|---------------|
|         |                                                                                                               |          |
| Item      1  | Financial      Statements                                                                                          |          |
|         | Consolidated      Condensed Balance SheetsJune      30, 2008 (unaudited) and December 31, 2007                     | 1             |
|         |                                                                                                               |          |
|         | Consolidated      Condensed Statements of Income (unaudited)Three      and six months ended June 30, 2008 and 2007 | 2             |
|         |                                                                                                               |          |
|         | Consolidated      Condensed Statements of Cash Flows (unaudited)Six      months ended June 30, 2008 and 2007       | 3             |
|         |                                                                                                               |          |
|         | Notes      to Consolidated Condensed Financial Statements (unaudited)                                              | 4             |
|         |                                                                                                               |          |
| Item      2  | Management's      Discussion and Analysis of Financial Condition and Results of      Operations                    | 7             |
|         |                                                                                                               |          |
| Item      3  | Quantitative      and Qualitative Disclosures about Market Risk                                                    | 20            |
|         |                                                                                                               |          |
| Item      4  | Controls      and Procedures                                                                                       | 21            |
|         |                                                                                                               |          |
|         | PART II   Other      Information                                                                              |          |
|         |                                                                                                               |          |
| Item      1  | Legal      Proceedings                                                                                             | 21            |
|         |                                                                                                               |          |
| Item      1A | Risk      Factors                                                                                                  | 22            |
|         |                                                                                                               |          |
| Item      2  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                   | 22            |
|         |                                                                                                               |          |
| Item      3  | Defaults      Upon Senior Securities                                                                               | 22            |
|         |                                                                                                               |          |
| Item      4  | Submission      of Matters to a Vote of Security Holders                                                           | 22            |
|         |                                                                                                               |          |
| Item      5  | Other      Information                                                                                             | 23            |
|         |                                                                                                               |          |
| Item      6  | Exhibits                                                                                                           | 23            |
|         |                                                                                                               |          |
|         | Signatures                                                                                                         | 24            |
|         |                                                                                                               |          |
|         | Exhibit      Index                                                                                                 | 25            |

----

| Assets                                                                   |   | June 30,2008 |    |   | December31,2007 |   |
|--------------------------------------------------------------------------|--------|--------------|---------|--------|-----------------|--------|
| Current      assets                                                      |   |         |    |   |            |   |
| Cash      and cash equivalents                                           |   | $            | 3,756   |   |            | $      | 2,473 |   |
| Accounts      receivable, net                                            |   |         | 60,315  |   |            |   | 52,682 |   |
| Tires      on equipment in use, net                                      |   |         | 5,000   |   |            |   | 5,120 |   |
| Deferred      income taxes                                               |   |         | 2,978   |   |            |   | 2,978 |   |
| Other      current assets                                                |   |         | 11,747  |   |            |   | 14,607 |   |
| Total      current assets                                                |   |         | 83,796  |   |            |   | 77,860 |   |
|                                                                     |   |         |    |   |            |   |   |   |
| Property      and equipment, net                                         |   |         | 82,943  |   |            |   | 90,309 |   |
| Other      assets                                                        |   |         | 5,055   |   |            |   | 5,500 |   |
| Total      assets                                                        |   | $            | 171,794 |   |            | $      | 173,669 |   |
|                                                                     |   |         |    |   |            |   |   |   |
| Liabilities      and shareholders' equity                                |   |         |    |   |            |   |   |   |
| Current      liabilities                                                 |   |         |    |   |            |   |   |   |
| Accounts      payable                                                    |   | $            | 26,590  |   |            | $      | 25,301 |   |
| Accrued      claims                                                      |   |         | 10,887  |   |            |   | 12,342 |   |
| Accrued      payroll and deferred compensation                           |   |         | 6,397   |   |            |   | 5,998 |   |
| Accrued      liabilities                                                 |   |         | 1,726   |   |            |   | 1,964 |   |
| Total      current liabilities                                           |   |         | 45,600  |   |            |   | 45,605 |   |
|                                                                     |   |         |    |   |            |   |   |   |
| Long-term      debt                                                      |   |         | 4,300   |   |            |   | -- |   |
| Deferred      income taxes                                               |   |         | 11,451  |   |            |   | 11,488 |   |
| Accrued      claims                                                      |   |         | 4,206   |   |            |   | 9,317 |   |
|     Total      liabilities                           |   |         | 65,557  |   |            |   | 66,410 |   |
|                                                                     |   |         |    |   |            |   |   |   |
| Shareholders'      equity                                                |   |         |    |   |            |   |   |   |
| Par      value of common stock (18,572 shares issued)                    |   |         | 27,858  |   |            |   | 27,858 |   |
| Paid      in capital                                                     |   |         | 5,632   |   |            |   | 5,682 |   |
| Retained      earnings                                                   |   |         | 86,959  |   |            |   | 88,515 |   |
|                                                                     |   |         | 120,449 |   |            |   | 122,055 |   |
| Treasury      stock (1,845 and 1,921 shares, respectively), at cost |   |         | (14,212 | )      |            |   | (14,796 | ) |
| Total      shareholders' equity                                          |   |         | 106,237 |   |            |   | 107,259 |   |
| Total      liabilities and shareholders' equity                          |   | $            | 171,794 |   |            | $      | 173,669 |   |

----

|                                                                                                    |   | Three      Months |    |   | Six      Months |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-----------------|--------|
|                                                                                                    |   | 2008              |    |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Revenue                                                                                                 |   | $                 | 129,025 |   |            | $      | 113,050 |   |   | $ | 245,755 |   |   | $ | 219,558 |   |
| Operating      expenses                                                                                 |   |              |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,      wages and related expenses                                                               |   |              | 32,072  |   |            |   | 33,153 |   |   |   | 62,831 |   |   |   | 65,208 |   |
| Purchased      transportation                                                                           |   |              | 32,964  |   |            |   | 27,995 |   |   |   | 63,624 |   |   |   | 52,403 |   |
| Fuel                                                                                                    |   |              | 32,271  |   |            |   | 20,795 |   |   |   | 56,564 |   |   |   | 39,751 |   |
| Supplies      and expenses                                                                              |   |              | 12,967  |   |            |   | 13,599 |   |   |   | 25,817 |   |   |   | 27,015 |   |
| Revenue      equipment rent                                                                             |   |              | 8,809   |   |            |   | 7,727 |   |   |   | 16,729 |   |   |   | 15,245 |   |
| Depreciation                                                                                            |   |              | 4,713   |   |            |   | 4,943 |   |   |   | 9,499 |   |   |   | 10,105 |   |
| Communications      and utilities                                                                       |   |              | 1,141   |   |            |   | 1,024 |   |   |   | 2,226 |   |   |   | 2,044 |   |
| Claims      and insurance                                                                               |   |              | 2,108   |   |            |   | 6,057 |   |   |   | 6,268 |   |   |   | 9,087 |   |
| Operating      taxes and licenses                                                                       |   |              | 1,199   |   |            |   | 1,193 |   |   |   | 2,268 |   |   |   | 2,362 |   |
| Gains      on sale of operating assets                                                                  |   |              | (345    | )      |            |   | (1,010 | ) |   |   | (605 | ) |   |   | (1,532 | ) |
| Miscellaneous      expenses                                                                             |   |              | 1,110   |   |            |   | 765 |   |   |   | 2,234 |   |   |   | 1,729 |   |
|        Total operating expenses                                                                    |   |              | 129,009 |   |            |   | 116,241 |   |   |   | 247,455 |   |   |   | 223,417 |   |
| Income      (loss) from operations                                                                      |   |              | 16      |   |            |   | (3,191 | ) |   |   | (1,700 | ) |   |   | (3,859 | ) |
| Non-operating      (income) expense                                                                     |   |              |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings of limited partnership                                                     |   |              | (138    | )      |            |   | (108 | )  |   |   | (311 | ) |   |   | (207 | )  |
| Interest      income                                                                                    |   |              | (40     | )      |            |   | (241 | ) |   |   | (54 | ) |   |   | (381 | ) |
| Interest      expense                                                                                   |   |              | 12      |   |            |   | -- |   |   |   | 35 |   |   |   | -- |   |
| Sale      of non-operating assets and other                                                             |   |              | (346    | )      |            |   | 332 |   |   |   | (307 | ) |   |   | 359 |   |
| Total      non-operating income                                                                         |   |              | (512    | )      |            |   | (17 | ) |   |   | (637 | ) |   |   | (229 | ) |
| Pre-tax      income (loss)                                                                              |   |              | 528     |   |            |   | (3,174 | ) |   |   | (1,063 | ) |   |   | (3,630 | ) |
| Income      tax expense (benefit)                                                                       |   |              | 254     |   |            |   | (2,513 | ) |   |   | (512 | ) |   |   | (2,736 | ) |
| Net      income (loss)                                                                                  |   | $                 | 274     |   |            | $      | (661 | ) |   | $ | (551 | ) |   | $ | (894 | ) |
|                                                                                                    |   |              |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per share of common stock                                                        |   |              |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
|              Basic                                                   |   | $                 | 0.02    |   |            | $      | (0.04 | ) |   | $ | (0.03 | ) |   | $ | (0.05 | ) |
|                      Diluted |   | $                 | 0.02    |   |            | $      | (0.04 | ) |   | $ | (0.03 | ) |   | $ | (0.05 | ) |
|              Weighted      average shares outstanding                |   |              |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
|                      Basic   |   |              | 16,708  |   |            |   | 17,296 |   |   |   | 16,680 |   |   |   | 17,357 |   |
|                      Diluted |   |              | 17,034  |   |            |   | 17,296 |   |   |   | 16,680 |   |   |   | 17,357 |   |

----

|                                                               |   | 2008   |    |   | 2007   |   |
|--------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Net      cash provided by operating activities                     |   | $      | 1,369   |   |   | $      | 12,003 |   |
|                                                               |   |   |    |   |   |   |   |   |
| Cash      flows from investing activities                          |   |   |    |   |   |   |   |   |
| Expenditures      for property and equipment                       |   |   | (10,325 | )      |   |   | (8,240 | ) |
| Proceeds      from sale of property and equipment                  |   |   | 7,008   |   |   |   | 9,111 |   |
| Other                                                              |   |   | (274    | )      |   |   | (14 | ) |
| Net      cash (used in) provided by investing activities |   |   | (3,591  | )      |   |   | 857 |   |
|                                                               |   |   |    |   |   |   |   |   |
| Cash      flows from financing activities                          |   |   |    |   |   |   |   |   |
| Proceeds      from borrowings                                      |   |   | 41,100  |   |   |   | 200 |   |
| Payments      against borrowings                                   |   |   | (36,800 | )      |   |   | (5,100 | ) |
| Dividends      paid                                                |   |   | (1,005  | )      |   |   | (1,048 | ) |
| Income      tax benefit of stock options and restricted stock      |   |   | 37      |   |   |   | 403 |   |
| Proceeds      from capital stock transactions                      |   |   | 173     |   |   |   | 1,348 |   |
| Purchases      of treasury stock                         |   |   | --      |   |   |   | (3,262 | ) |
| Net      cash provided by (used in) financing activities           |   |   | 3,505   |   |   |   | (7,459 | ) |
|                                                               |   |   |    |   |   |   |   |   |
| Net      increase in cash and cash equivalents                     |   |   | 1,283   |   |   |   | 5,401 |   |
| Cash      and cash equivalents at January 1                        |   |   | 2,473   |   |   |   | 9,589 |   |
| Cash      and cash equivalents at June 30                          |   | $      | 3,756   |   |   | $      | 14,990 |   |

----

|                                 |   | June      30, 2008 |   |   | December      31, 2007 |   |
|--------------------------------------|--------|--------------------|--------|--------|------------------------|--------|
| Due      from equipment sales        |   | $                  | 2.8    |   |                   | $      | 0.7 |   |
| Income      taxes receivable         |   |               | 1.3    |   |                   |   | 4.1 |   |
| Other      prepaid taxes             |   |               | 0.8    |   |                   |   | 1.2 |   |
| Prepaid      insurance               |   |               | 2.0    |   |                   |   | 1.6 |   |
| Prepaid      rent                    |   |               | 2.0    |   |                   |   | 1.8 |   |
| Retired      equipment held for sale |   |               | --     |   |                   |   | 1.5 |   |
| Prepaid      licenses and permits    |   |               | --     |   |                   |   | 1.6 |   |
| Inventories      and other           |   |               | 2.8    |   |                   |   | 2.1 |   |
|                                 |   | $                  | 11.7   |   |                   | $      | 14.6 |   |

----

US GAAP requires that, for interim periods, we project full-yearincome and permanent differences between book income and taxable income in orderto calculate an effective tax rate for the entire year.  Thatprojected effective tax rate is used to calculate our income tax provision orbenefit for the interim periods’ year-to-date financialresults.

The difference between our effective taxrate and the federal statutory rate of 35% is primarily attributable to stateincome taxes and non-deductible employee-driver expenses.

----

|                                         |   | Three      Months |   |   | Six      Months |   |
|----------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
| Weighted      average number of:             |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Basic      shares                            |   |              | 16,708 |   |            |   | 17,296 |   |   |   | 16,680 |   |   |   | 17,357 |   |
| Common      stock equivalents                |   |              | 326    |   |            |   | -- |   |   |   | -- |   |   |   | -- |   |
| Diluted      shares                          |   |              | 17,034 |   |            |   | 17,296 |   |   |   | 16,680 |   |   |   | 17,357 |   |
|                                         |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Anti-dilutive      shares excluded due to:   |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Exercise      price of stock options         |   |              | 581    |   |            |   | 565 |   |   |   | 576 |   |   |   | 662 |   |
| Net      loss                                |   |              | --     |   |            |   | 447 |   |   |   | 312 |   |   |   | 438 |   |
| Total      excluded common stock equivalents |   |              | 581    |   |            |   | 1,012 |   |   |   | 888 |   |   |   | 1,100 |   |

FASB issued Statement of FinancialAccounting Standards No. 141 (revised 2007), Business Combinations (“SFAS141R”), which replaces FASB Statement No. 
141,Business Combinations (asamended).  SFAS 141R establishes principles and requirements for howan acquirer recognizes and measures in its financial statements the identifiableassets acquired, the liabilities assumed, any non-controlling interest in theacquiree and the goodwill acquired.  The statement also establishesdisclosure requirements that will enable users to evaluate the nature andfinancial effects of the business combination.  SFAS 141R is effective asof the beginning of an entity’s first fiscal year that begins afterDecember 15, 2008.  The adoption of SFAS 141R could have a significantimpact on our financial condition, results of operations and cash flows if weshould enter into a business combination after that date.

----

We buy most of the trailers and trailerrefrigeration units we use in our operations from W&B. All of our trailerpurchase orders are awarded after a competitive bidding process to ensure thatwe are getting the best possible product quality, price, warranty and otherterms. We also rely on W&B to provide routine maintenance and warrantyrepair of the trailers and refrigeration units.

----

Revenue:Our revenue is derived from five types of transactions: 

| - | Truckload                                    |
|---|----------------------------------------------|
| - | Less-than-Truckload      (“LTL”) |
| - | Dedicated      Fleet                         |
| - | Brokerage      and Logistics                 |
| - | Equipment      Rental                        |

----

|                                            |   | Three      Months |   |   | Six      Months |   |
|-------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
|                                            |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Revenue      from: (a)                          |   |              |   |   |            |   |   |   |   |   |   |   |
| Temperature-controlled      fleet               |   | $                 | 36.6   |   |            | $      | 34.3 |   |   | $ | 71.2 |   |   | $ | 68.7 |   |
| Dry-freight      fleet                          |   |              | 18.0   |   |            |   | 19.5 |   |   |   | 36.2 |   |   |   | 37.8 |   |
| Total      truckload linehaul services          |   |              | 54.6   |   |            |   | 53.8 |   |   |   | 107.4 |   |   |   | 106.5 |   |
| Dedicated      fleets                           |   |              | 5.7    |   |            |   | 4.0 |   |   |   | 11.7 |   |   |   | 8.4 |   |
| Total      truckload revenue                    |   |              | 60.3   |   |            |   | 57.8 |   |   |   | 119.1 |   |   |   | 114.9 |   |
| LTL      linehaul services                      |   |              | 30.1   |   |            |   | 31.9 |   |   |   | 60.0 |   |   |   | 62.3 |   |
| Total      linehaul and dedicated revenue  |   |              | 90.4   |   |            |   | 89.7 |   |   |   | 179.1 |   |   |   | 177.2 |   |
| Fuel      surcharges                            |   |              | 33.3   |   |            |   | 18.1 |   |   |   | 56.3 |   |   |   | 32.8 |   |
| Brokerage                                       |   |              | 3.9    |   |            |   | 4.0 |   |   |   | 7.5 |   |   |   | 7.1 |   |
| Equipment      rental                 |   |              | 1.4    |   |            |   | 1.2 |   |   |   | 2.9 |   |   |   | 2.4 |   |
| Total      revenue                              |   |              | 129.0  |   |            |   | 113.0 |   |   |   | 245.8 |   |   |   | 219.5 |   |
| Operating      expenses (a)                     |   |              | 129.0  |   |            |   | 116.2 |   |   |   | 247.5 |   |   |   | 223.4 |   |
| Income      (loss) from operations (a)          |   | $                 | --     |   |            | $      | (3.2 | ) |   | $ | (1.7 | ) |   | $ | (3.9 | ) |
| Operating      ratio (b)                        |   |              | 100.0  | %      |            |   | 102.8 | % |   |   | 100.7 | % |   |   | 101.8 | % |
| Weekly      average trucks in service           |   |              | 2,028  |   |            |   | 2,124 |   |   |   | 2,037 |   |   |   | 2,143 |   |
| Revenue      per truck per week (c)             |   | $                 | 3,429  |   |            | $      | 3,249 |   |   | $ | 3,382 |   |   | $ | 3,198 |   |

| Computational      notes: |
|---------------------------|
| (a)                       | Revenue      and expense amounts are stated in million of dollars.  The amounts      presented in the table may not agree to the amounts shown in the      accompanying consolidated condensed statements of income due to      rounding. |
| (b)                       | Operating      expenses divided by total revenue. |
| (c)                       | Average      weekly linehaul and dedicated revenue divided by weekly average trucks in      service. |
|                      |   |

  

|                                                                |   |   | Three      Months |   |   |   | Six Months |   |
|---------------------------------------------------------------------|--------|--------|-------------------|--------|--------|--------|-----------------|--------|
| Truckload                                                           |   |   | 2008              |   |   |   | 2007            |   |   |   | 2008 |   |   |   | 2007 |   |
|     Total      linehaul miles (a)               |   |   | 42.3              |   |   |   | 41.5            |   |   |   | 82.4 |   |   |   | 82.0 |   |
|     Loaded      miles (a)                       |   |   | 38.6              |   |   |   | 37.5            |   |   |   | 75.1 |   |   |   | 73.9 |   |
|     Empty      mile ratio (b)                   |   |   | 8.7               | %      |   |   | 9.6             | %      |   |   | 8.9 | % |   |   | 9.9 | % |
|     Linehaul      revenue per total mile (c)    |   | $      | 1.29              |   |   | $      | 1.30            |   |   | $ | 1.30 |   |   | $ | 1.30 |   |
|     Linehaul      revenue per loaded mile (d)   |   | $      | 1.41              |   |   | $      | 1.43            |   |   | $ | 1.43 |   |   | $ | 1.44 |   |
|     Linehaul      shipments (e)                 |   |   | 39.9              |   |   |   | 40.1            |   |   |   | 76.0 |   |   |   | 79.4 |   |
|     Loaded      miles per shipment (f)          |   |   | 967               |   |   |   | 935             |   |   |   | 988 |   |   |   | 931 |   |
| LTL                                                                 |   |   |              |   |   |   |            |   |   |   |   |   |   |   |   |   |
|     Hundredweight      (e)                      |   |   | 2,134             |   |   |   | 2,160           |   |   |   | 4,208 |   |   |   | 4,213 |   |
|     Shipments      (e)                          |   |   | 66.8              |   |   |   | 69.7            |   |   |   | 133.5 |   |   |   | 135.3 |   |
|     Linehaul      revenue per hundredweight (g) |   | $      | 14.10             |   |   | $      | 14.77           |   |   | $ | 14.26 |   |   | $ | 14.79 |   |
|     Linehaul      revenue per shipment (h)      |   | $      | 451               |   |   | $      | 458             |   |   | $ | 449 |   |   | $ | 460 |   |
|     Average      weight per shipment (i)        |   |   | 3,195             |   |   |   | 3,099           |   |   |   | 3,152 |   |   |   | 3,114 |   |

| Computational      notes: |
|---------------------------|
| (a)                       | In      millions. |
| (b)                       | Total      linehaul miles minus loaded miles, divided by total linehaul      miles. |
| (c)                       | Revenue      from linehaul services divided by total linehaul miles. |
| (d)                       | Revenue      from linehaul services divided by loaded miles. |
| (e)                       | In      thousands. |
| (f)                       | Total      loaded miles divided by number of linehaul shipments. |
| (g)                       | LTL      revenue divided by LTL hundredweight. |
| (h)                       | LTL      revenue divided by number of LTL shipments. |
| (i)                       | LTL      hundredweight times one hundred, divided by number of LTL      shipments.  |

----

----

|                                                 |   | Three      Months |   |   | Six      Months |   |
|------------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
|  Amount      of Operating Expenses Incurred for |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Salaries,      wages and related expenses            |   |              | 24.9   | %      |            |   | 29.3 | % |   |   | 25.6 | % |   |   | 29.7 | % |
| Purchased      transportation                        |   |              | 25.5   |   |            |   | 24.8 |   |   |   | 25.9 |   |   |   | 23.9 |   |
| Fuel                                                 |   |              | 25.0   |   |            |   | 18.4 |   |   |   | 23.0 |   |   |   | 18.1 |   |
| Supplies      and expenses                           |   |              | 10.0   |   |            |   | 12.0 |   |   |   | 10.5 |   |   |   | 12.3 |   |
| Revenue      equipment rent and depreciation         |   |              | 10.5   |   |            |   | 11.2 |   |   |   | 10.7 |   |   |   | 11.5 |   |
| Claims      and insurance                            |   |              | 1.6    |   |            |   | 5.4 |   |   |   | 2.6 |   |   |   | 4.1 |   |
| Other                                                |   |              | 2.5    |   |            |   | 1.7 |   |   |   | 2.4 |   |   |   | 2.2 |   |
| Total      operating expenses                        |   |              | 100.0  | %      |            |   | 102.8 | % |   |   | 100.7 | % |   |   | 101.8 | % |

----

|                                                             |   | Three      Months |   |   | Six      Months |   |
|------------------------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
| Amount      of Salaries, Wages and Related Expenses Incurred for |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Driver      salaries and per-diem expenses                       |   | $                 | 18.8   |   |            | $      | 18.0 |   |   | $ | 35.9 |   |   | $ | 36.7 |   |
| Non-driver      salaries                                         |   |              |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
|      Motor-carrier      operations      |   |              | 8.5    |   |            |   | 9.7 |   |   |   | 17.7 |   |   |   | 18.9 |   |
|      Logistics      and brokerage       |   |              | 0.6    |   |            |   | 0.2 |   |   |   | 1.2 |   |   |   | 0.4 |   |
|      Severance      Pay                 |   |              | 0.1    |   |            |   | 0.8 |   |   |   | 0.2 |   |   |   | 0.9 |   |
| Payroll      taxes                                               |   |              | 1.8    |   |            |   | 2.0 |   |   |   | 4.2 |   |   |   | 4.4 |   |
| Work-related      injuries                                       |   |              | 1.0    |   |            |   | 1.4 |   |   |   | 1.7 |   |   |   | 1.8 |   |
| Health      insurance and other                                  |   |              | 1.2    |   |            |   | 1.0 |   |   |   | 1.9 |   |   |   | 2.1 |   |
|                                                             |   | $                 | 32.0   |   |            | $      | 33.1 |   |   | $ | 62.8 |   |   | $ | 65.2 |   |

----

|                                                         |   | Three      Months |   |   | Six      Months |   |
|--------------------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
| Amount      of Purchased Transportation Expense Incurred for |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Truckload      linehaul service                              |   | $                 | 7.6    |   |            | $      | 10.3 |   |   | $ | 16.1 |   |   | $ | 19.7 |   |
| LTL      linehaul service                                    |   |              | 8.1    |   |            |   | 8.5 |   |   |   | 16.3 |   |   |   | 16.6 |   |
| Intermodal                                                   |   |              | 5.3    |   |            |   | 1.3 |   |   |   | 9.9 |   |   |   | 2.4 |   |
| Total      linehaul service                                  |   |              | 21.0   |   |            |   | 20.1 |   |   |   | 42.3 |   |   |   | 38.7 |   |
| Fuel      surcharges                                         |   |              | 8.6    |   |            |   | 4.5 |   |   |   | 15.0 |   |   |   | 7.9 |   |
| Brokerage      and other                                     |   |              | 3.3    |   |            |   | 3.4 |   |   |   | 6.3 |   |   |   | 5.8 |   |
|                                                         |   | $                 | 32.9   |   |            | $      | 28.0 |   |   | $ | 63.6 |   |   | $ | 52.4 |   |

----

|                                                                              | Three      Months |   | Six Months |   |
|-----------------------------------------------------------------------------------|-------------------|--------|-----------------|--------|
|                                                                              | 2008              |   | 2007            |   | 2008 |   | 2007 |   |
| Total      linehaul and dedicated fleet revenue                                   |              | $      | 90.4            |   |   | $ | 89.7 |   |   | $ | 179.1 |   |   | $ | 177.2 |   |
| Fuel      expense                                                                 |              | $      | 32.3            |   |   | $ | 20.8 |   |   | $ | 56.6 |   |   | $ | 39.8 |   |
| Fuel      expense as a percent of total linehaul and dedicated fleet      revenue |              |   | 35.7            | %      |   |   | 23.2 | % |   |   | 31.6 | % |   |   | 22.5 | % |

Our fuel expenses are impacted by the mix offreight handled by company equipment or by owner-operators.  As moreof our freight volume is moved by company equipment, the related cost of fuelmoves from purchased transportation expense to fuel expense.

----

|                                              |   | Three      Months |   |   | Six      Months |   |
|---------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
| Amount      of Supplies and Expenses Incurred for |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Fleet      repairs and maintenance                |   | $                 | 4.2    |   |            | $      | 3.9 |   |   | $ | 8.1 |   |   | $ | 7.9 |   |
| Freight      handling                             |   |              | 2.7    |   |            |   | 3.0 |   |   |   | 5.6 |   |   |   | 5.7 |   |
| Driver      travel expenses                       |   |              | 0.8    |   |            |   | 0.6 |   |   |   | 1.6 |   |   |   | 1.3 |   |
| Tires                                             |   |              | 1.4    |   |            |   | 1.4 |   |   |   | 2.6 |   |   |   | 2.8 |   |
| Terminal      and warehouse expenses              |   |              | 1.4    |   |            |   | 1.5 |   |   |   | 3.0 |   |   |   | 3.0 |   |
| Driver      recruiting                            |   |              | 0.8    |   |            |   | 1.4 |   |   |   | 1.7 |   |   |   | 2.8 |   |
| Other                                             |   |              | 1.6    |   |            |   | 1.8 |   |   |   | 3.2 |   |   |   | 3.5 |   |
|                                              |   | $                 | 12.9   |   |            | $      | 13.6 |   |   | $ | 25.8 |   |   | $ | 27.0 |   |

|                                            |   | Three      Months |   |    | Six      Months |   |
|-------------------------------------------------|--------|-------------------|--------|---------|-----------------|--------|
| Claims      and Insurance Expenses Incurred for |   | 2008              |   |    | 2007            |   |   | 2008 |   |   | 2007 |   |
| Liability                                       |   | $                 | 1.9    |    |            | $      | 4.4 |   |   | $ | 4.6 |   |   | $ | 6.2 |   |
| Cargo                                           |   |              | (0.3   | )  |            |   | 0.8 |   |   |   | 0.4 |   |   |   | 1.4 |   |
| Physical      damage, property and other        |   |              | 0.5    |    |            |   | 0.9 |   |   |   | 1.3 |   |   |   | 1.5 |   |
|                                            |   | $                 | 2.1    |    |            | $      | 6.1 |   |   | $ | 6.3 |   |   | $ | 9.1 |   |

----

|                                               |   | Three      Months |   |   | Six      Months |   |
|----------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
| Amount      of Non-operating (Income) Expense from |   | 2008              |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
| Equity      in earnings of limited partnership     |   | $                 | (138   | )      |            | $      | (108 | ) |   | $ | (311 | ) |   | $ | (207 | ) |
| Interest      income                               |   |              | (40    | )      |            |   | (241 | ) |   |   | (54 | ) |   |   | (381 | ) |
| Interest      expense                              |   |              | 12     |   |            |   | -- |   |   |   | 35 |   |   |   | -- |   |
| Sale      of non-operating assets and other        |   |              | (346   | )      |            |   | 332 |   |   |   | (307 | ) |   |   | 359 |   |
|                                               |   | $                 | (512   | )      |            | $      | (17 | ) |   | $ | (637 | ) |   | $ | (229 | ) |

----

----

As of June 30, 2008, we had $4.3 million inoutstanding debt and we had issued letters of credit for insurance purposes inthe amount of $5.6 million. The table below sets forth information as to theamounts of our obligations and commitments as well as the year in which theywill become due (in millions):

| Payments      Due by Year                 |   | Total  |   |   | 2008   | (1)    |   |   | 2009-2010 |   |   |   | 2011-2012 |   |   | After      2012 |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|-----------------|--------|
| Long-term      debt and letters of credit |   | $      | 9.9    |   |   | $      | --     |   |      | $      | 9.9    |   |      | $      | --     |            |   | $ | -- |   |
| Purchase      obligations                 |   |   | 17.1   |   |   |   | 17.1   |   |      |   | --     |   |      |   | --     |            |   |   | -- |   |
| Operating      leases for                 |   |   |   |   |   |   |   |   |      |   |   |   |      |   |   |            |   |   |   |   |
| Rentals                                   |   |   | 86.8   |   |   |   | 16.9   |   |      |   | 46.9   |   |      |   | 17.3   |            |   |   | 5.7 |   |
| Residual      guarantees                  |   |   | 4.9    |   |   |   | 0.5    |   |      |   | 2.6    |   |      |   | 1.8    |            |   |   | -- |   |
| Accounts      payable                     |   |   | 26.6   |   |   |   | 26.6   |   |      |   | --     |   |      |   | --     |            |   |   | -- |   |
| Accrued      payroll                      |   |   | 4.8    |   |   |   | 4.8    |   |      |   | --     |   |      |   | --     |            |   |   | -- |   |
|                                      |   |   | 150.1  |   |   | $      | 65.9   |   |      | $      | 59.4   |   |      | $      | 19.1   |            |   | $ | 5.7 |   |
| Deferred      compensation                |   |   |   |   |   |   |   |   |      |   |   |   |      |   |   |            |   |   |   |   |
| Phantom      stock (2)                    |   |   | 0.7    |   |   |   |   |   |      |   |   |   |      |   |   |            |   |   |   |   |
| Rabbi      trust (3)                      |   |   | 0.9    |   |   |   |   |   |      |   |   |   |      |   |   |            |   |   |   |   |
|      Total       |   | $      | 151.7  |   |   |   |   |   |      |   |   |   |      |   |   |            |   |   |   |   |

| (1)  | Represents      amounts due between July 1, 2008 and December 31, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Represents      the current value of approximately 106 thousand restricted phantom stock      units awarded pursuant to the company's Executive Bonus and Phantom Stock      Plan and a Supplemental Executive Retirement Plan. An officer may elect to      cash out any number of the phantom stock units between December 1 and      December 15 of any year selected by the officer with the payout amount      with respect to each phantom stock unit being generally equal to the      greater of (i) the actual price of the company's common stock on December      31 of the year of an officer's election to cash out the unit, or (ii) the      average of the 12 month-end values of such stock during the year in which      an officer elects to cash out. Accordingly, we are unable to anticipate      the year this currently unfunded obligation will be paid in cash or the      amount of cash ultimately payable. |
| (3)  | Represents      the obligations of a "grantor" (or "rabbi") trust established in      connection with our 401(k) wrap plan to hold company assets to satisfy      obligations under the wrap plan. The trust obligations include      approximately 70,500 shares of our common stock that will be cashed      out either upon the eligibility of the obligations to be transferred to      our 401(k) Savings Plan or upon the retirement of individual wrap plan      participants. Accordingly, we are unable to anticipate the year this      amount will be paid in cash or the amount of cash ultimately      payable.                                                                                                                                                                                                                                                                                                       |

As of June 30, 2008, we had non-cancellable contracts to purchasetractors and trailers totaling $17.1 million during 2008.  We expectto lease many of these assets when they are placed intoservice.

----

----

           Amongthe key factors that are not within our control and that may cause actualresults to differ materially from those projected in such forward-lookingstatements are demand for our services and products, and our ability tomeet that demand, which may be affected by, among other things, competition,weather conditions, highway and port congestion, the general economy, theavailability and cost of labor, the ability to negotiate favorably with lendersand lessors, the effects of terrorism and war, the availability and cost ofequipment, fuel and supplies, the market for previously-owned equipment, theimpact of changes in the tax and regulatory environment in which we operate,operational risks and insurance, risks associated with the technologies andsystems used and the other risks and uncertainties described in our filingswith the SEC.

| Description                                                                     |   | Discussion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Rabbi      Trust investment ($476 thousand) in 70,500 shares of our      stock. |   | Our      consolidated condensed financial statements include the assets and      liabilities of a Rabbi Trust established to hold the investments of      participants in our 401(k) Wrap Plan and for deferred compensation      liabilities under our Executive Bonus and Phantom Stock Plan. Such      liabilities are adjusted from time to time to reflect changes in the      market price of our common stock. Accordingly, our future compensation      expense and income will be impacted by fluctuations in the market price of      our common stock. |

----

 

PARTII.  OTHER INFORMATION

----

 

Item 2.   Unregistered Sales of EquitySecurities and Use of Proceeds

| Period                         | Total      Number of SharesPurchased(a) |         | Average      PricePaid      per Share(b) |   | Total      Number of Shares Purchasedas      Part of Publicly Announced Plansor      Programs(c) |   | Maximum      Number(or      Approximate Dollar Value) of Shares That May Yet      Be Purchased Under the Plans or      Programs (1) (d) |   |
|--------------------------------|----------------------------------------------|--------------|------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| April      1 to April 30, 2008 | --                                           |         | $                                   | --     |                                                                                             | --     |                                                                                                                                              |   | 1,357,900 |   |
| May      1 to May 31, 2008     | --                                           |         |                                     | --     |                                                                                             | --     |                                                                                                                                              |   | 1,357,900 |   |
| June      1 to June 30, 2008   | --                                           |    |                                     | --     |                                                                                             | --     |                                                                                                                                              |   | 1,357,900 |   |
| Total                          | --                                           |         | $                                        | --     |                                                                                             | --     |                                                                                                                                              |   |   |   |

| (1)    | On      November 9, 2007, our Board of Directors renewed our authorization to      purchase up to 1,357,900 shares of our common stock. The authorization      allows purchases from time to time on the open market or through private      transactions at such times as management deems appropriate. The      authorization does not specify an expiration date. Purchases may be      increased, decreased or discontinued by our Board of Directors at any time      without prior notice. |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

               Each of management’s nominees for Class I directors, as listed in the proxystatement, was elected with the number of votes set forthbelow:

|   | Director                                                      |   | For                            |   | Withheld             |   | Results                  |
|--------|---------------------------------------------------------------|--------|--------------------------------|--------|----------------------|--------|--------------------------|
|   | Barrett      D. ClarkLeroy      HallmanS.      Russell Stubbs |   | 16,251,63616,196,95915,963,845 |   | 49,361104,038337,152 |   | ApprovedApprovedApproved |

----

| Subject      of Proposal                                                                                                                                                       |   | For    |              |   | Against |   |           | Abstain |   |   | BrokerNon-Vote |   | Results        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------|--------|---------|--------|----------------|---------|--------|--------|----------------|--------|---------------------|
| To      approve the amended and restated Frozen Food Express Industries, Inc. 2005      Non-Employee Director Restricted Stock Plan (as Restated Effective April      1, 2008) |   |   |   14,251,353 |   |    |   |   148,957 |    |   |   |   412,823 |   |                |   |   1,487,864 |   |   Approved |

Item 5.    OtherInformation

   Exhibits

| 31.1   | Certification      of Chief Executive Officer Required by Rule 13a-14(a)(17 CFR      240.13a-14(a)). (filed herewith)                                                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                               |
| 31.2   | Certification      of Chief Financial Officer Required by Rule 13a-14(a)(17 CFR      240.13a-14(a)). (filed herewith)                                                              |
|   |                                                                                                                                                                               |
| 32.1   | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (filed      herewith) |
|   |                                                                                                                                                                               |
| 32.2   | Certification      of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (filed      herewith) |

----

|                             |  FROZEN      FOOD EXPRESS INDUSTRIES, INC. |
|----------------------------------|-------------------------------------------------|
|                             |  (Registrant)                              |
|                             |                                            |   |
|  Dated:      August 1, 2008 |  By                                        |  /s/      Stoney M. Stubbs, Jr. |
|                             |                                            | Stoney      M. Stubbs, Jr.Chairman      of the Board of Directors and President(Principal      Executive Officer) |
|                             |                                            |
|                             |                                            |
|  Dated:      August 1, 2008 |  By                                        |  /s/      Thomas G. Yetter |
|                             |                                            | Thomas      G. YetterSenior      Vice President and Chief Financial Officer(Principal      Financial and Accounting Officer) |

----

  

| 31.1   | Certification      of Chief Executive Officer Required by Rule 13a-14(a)(17 CFR      240.13a-14(a)). (filed herewith)                                                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                               |
| 31.2   | Certification      of Chief Financial Officer Required by Rule 13a-14(a)(17 CFR      240.13a-14(a)). (filed herewith)                                                              |
|   |                                                                                                                                                                               |
| 32.1   | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (filed      herewith) |
|   |                                                                                                                                                                               |
| 32.2   | Certification      of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (filed      herewith) |

----