SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                    FORM 10-K

[ X ]    Annual Report Pursuant to Section 13 or 15(d) of the Securities
         Exchange  Act  of  1934

                   For the Fiscal Year Ended December 31, 2000

                                       or

[   ]    Transition  Report  Pursuant  to  Section  13  or  15(d)  of  the
         Securities  Exchange  Act  of  1934

                           Commission File No. 0-15057

                      P.A.M. TRANSPORTATION SERVICES, INC.
             (Exact name of registrant as specified in its charter)

                     Delaware                                    71-0633135
                     --------                                    ----------
         (State or other jurisdiction of                     (I.R.S. Employer
          incorporation or organization)                    Identification No.)

                                Highway 412 West
                                  P.O. Box 188
                           Tontitown, Arkansas 72770
                                 (501) 361-9111
          (Address of principal executive offices, including zip code,
                   and telephone number, including area code)

Securities  registered  pursuant  to  section  12(b)  of  the  Act:  None

Securities  registered pursuant to section 12(g) of the Act:  Common Stock, $.01
par  value

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  (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.
                            Yes  X             No
                                ---              ---
Indicate  by  check mark if disclosure of delinquent filers pursuant to Item 405
of  Regulation  S-K  is  not contained herein, and will not be contained, to the
best  of  the  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in  Part  III  of this Form 10-K or any
amendment  to  this  Form  10-K.  [  ]

The  aggregate  market  value  of  the  common  stock  of the registrant held by
non-affiliates  of the registrant on March 15, 2001 was $16,715,648.  Solely for
the  purposes  of  this  response,  executive officers, directors and beneficial
owners  of  more  than five percent of the Company's common stock are considered
the  affiliates  of  the  Company  at  that  date.

The  number  of shares outstanding of the issuer's common stock, as of March 15,
2001:  8,475,957  shares  of  $.01  par  value  common  stock.

                     DOCUMENTS INCORPORATED BY REFERENCE
The  Registrant's  definitive  Proxy  Statement  for  its  Annual  Meeting  of
Shareholders  to  be held in 2001 is incorporated by reference in answer to Part
III  of  this  report,  with  the  exception  of information regarding executive
officers  required  under  Item 10 of Part III, which information is included in
Part  I,  Item  1.

Certain  statements  contained  in this filing are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995, such
as  statements  relating  to  financial  results  and  plans for future business
development  activities,  and  are  thus  prospective.  Such  forward-looking
statements  are  subject  to  risks, uncertainties and other factors which could
cause  actual  results  to  differ  materially  from future results expressed or
implied  by  such  forward-looking statements. Potential risks and uncertainties
include, but are not limited to, general economic conditions, competition in the
transportation  industry  and  other uncertainties detailed from time to time in
the  Company's  Securities  and  Exchange  Commission  filings.

                                     PART I

ITEM 1. BUSINESS
----------------

     P.A.M. Transportation Services, Inc. (the "Company"), operating through its
wholly-owned  subsidiaries,  is  an  irregular  route, common and contract motor
carrier  authorized  to transport general commodities throughout the continental
United  States  and  the  Canadian  provinces of Ontario and Quebec, pursuant to
operating  authorities  granted  by  the  former  Interstate Commerce Commission
("ICC"),  various  state  regulatory  agencies and Canadian regulatory agencies.
Under  its operating authorities, the Company may transport all types of freight
(except  household goods, commodities in bulk and certain explosives) intrastate
within  any  state, and from any point in the continental United States, Ontario
or  Quebec  to any other point in the continental United States or in Ontario or
Quebec  over  any  route  selected  by  the Company.  The Company transports dry
freight  commodities  ("freight")  in  48-foot  and  53-foot  long,  high  cube
conventional  and  specialized  freight vans ("trailers").  The freight consists
primarily  of  automotive  parts,  consumer  goods, such as general retail store
merchandise, and products from the manufacturing sector, such as heating and air
conditioning  units.  All  freight  is  transported  as  truckload  quantities.

     The  Company  is a holding company organized under the laws of the State of
Delaware  in  June  1986  and  conducts  its operations through its wholly-owned
subsidiaries,  P.A.M.  Transport,  Inc.  ("P.A.M.  Transport"),  P.A.M.  Special
Services,  Inc., T.T.X., Inc., P.A.M. Dedicated Services, Inc., P.A.M. Logistics
Services,  Inc.,  Choctaw  Express, Inc., Choctaw Brokerage, Inc., Allen Freight
Services,  Inc.  and  Decker  Transport  Co.,  Inc.  The  Company's  operating
authorities  are  held  by  P.A.M.  Transport,  P.A.M. Dedicated Services, Inc.,
Choctaw Express, Inc., Choctaw Brokerage, Inc., Allen Freight Services, Inc. and
Decker  Transport Co., Inc.  Although not organized until June 1986, the Company
is,  for financial accounting purposes, the successor to P.A.M. Transport, which
was  organized  under  the  laws  of  the State of Arkansas in 1980.  Unless the
context  otherwise requires, all references to the Company in this Annual Report
on  Form 10-K include P.A.M. Transportation Services, Inc. and its subsidiaries.

     The  Company  is  headquartered  and  maintains  its  primary  terminal,
maintenance  facilities and corporate and administrative offices in Tontitown in
the  northwest  corner of Arkansas, a major center for the trucking industry and
where  the  support  services (including warranty repair services) of most major
tractor  and  trailer  equipment  manufacturers  are  readily  available.

MARKETING/MAJOR  CUSTOMERS

     The  Company's  marketing  emphasis  is  directed  to  that  segment of the
truckload  market  which  is  generally  service-sensitive,  as opposed to being
solely price competitive.  Since 1990, the Company has diversified its marketing
efforts  to  gain  access  to  non-traditional  freight  traffic,  including
international (Mexico and Canada), domestic regional short-haul, dedicated fleet
services  and  intermodal  transportation.  The  Company  also  participates  in
various  "core  carrier"  partnerships  with  its larger customers.  The Company
estimates  that  approximately  70% of its deliveries to customers are made on a
JIT ("just in time") basis, whereby products and raw materials are scheduled for
delivery  as  they  are  needed  on  the  retail  customer's  shelves  or in the
manufacturing  customer's production line.  Such requirements place a premium on
the  freight  carrier's  delivery  performance and reliability.  With respect to
these  JIT deliveries, approximately 30% require the use of two-man driver teams
to  meet  the  customer's  schedule.  The  need for this service is a product of
modern  manufacturing  and  assembly  methods  which are designed to drastically
decrease  inventory  levels  and  handling  costs.

     The  Company's marketing efforts are conducted by ten outside sales persons
domiciled  within  the  Company's major markets.  Field personnel are supervised
from  Company headquarters, emphasizing an even flow of freight traffic (balance
between  originations  and  destinations  in  a  given  geographical  area)  and
minimization  of  movement  of  empty  equipment.

     During  2000,  the  Company's five largest customers, for which the Company
provides  carrier  services covering a number of geographic locations, accounted
for  approximately  55% of total revenues.  General Motors Corporation accounted
for  approximately 33% of 2000 revenues.  A total loss of this business, however
unlikely,  would  have  an  adverse impact on the Company's operations, at least
over  the  short  term.

     The  Company  also  provides transportation services to other manufacturers
who  are  suppliers for automobile manufacturers.  As a result, concentration of
the  Company's business within the industry is greater than the concentration in
a single customer.  Of the Company's revenues for 2000 that were attributable to
its  top  ten  customers,  approximately  50%  were  derived from transportation
services  provided  to  the  automobile  industry.

OPERATIONS

     The  Company maintains dispatch offices at its headquarters, as well as its
offices  in Jacksonville, Florida; Columbia, Mississippi; Warren, Ohio; Oklahoma
City, Oklahoma; Willard, Ohio; Riverdale, New Jersey; Laredo, Texas; and Irving,
Texas,  with  a  toll  free  WATS  line  to  facilitate communications with both
customers  and  drivers.  The  location, status and contact assignment of all of
the  Company's  equipment  are  available  on  an  up-to-date  basis through the
Company's  computer  system,  which  permits the Company to better meet delivery
schedules,  respond  to  customer  inquiries  and  match equipment with the next
available  load.

     The Company has installed Qualcomm OmnitracsTM  display units in all of its
tractors.  The  Omnitracs  system  is  a  satellite-based global positioning and
communications  system  that  allows fleet managers to communicate directly with
drivers.  Drivers  can  provide  location  status  and  updates  directly to the
customer's  computer,  saving  telephone  usage  cost,  lost  productivity,  and
inconvenience.  The  Omnitracs  system  provides  customer service with accurate
estimated time of arrival information which optimizes load selection and service
levels  to  the  Company's  customers.  In order to lower its tractor to trailer
ratio, the Company has also installed Qualcomm  TrailerTracsTM tracking units in
all  of  its  trailers.  The  TrailerTracs system is a tethered trailer tracking
product  that  enables the Company to more efficiently track the location of all
trailers  in  its  inventory as they connect and disconnect to Qualcomm equipped
Company  equipment.  The  system  has  been  extended through a partnership with
Qualcomm  and  its Mexican subsidiary, CNR, to provide the same information when
the  Company's  trailers are picked up and dropped by Mexican carriers providing
through  trailer  service  into  Mexico.

     The  Company  communicates through electronic data interchange with many of
its  customers,  providing  live status reports of freight shipments and arrival
time  information.  This system provides the Company's customers flexibility and
convenience by allowing the customer to tender freight electronically.

REVENUE  EQUIPMENT

     The  Company  operated  a  fleet  of  1,413  tractors and 3,759 trailers at
December  31, 2000.  All  except  117  tractors  are  owned by the Company.  The
tractors  that  are  not  Company owned are leased from owner/operators on a per
mile  basis.

     At  the  end  of  the  respective  years,  the average age of the Company's
tractors was 1.74 years in 1998, 1.64 years in 1999 and 1.72 years in 2000.  The
average  age  of the Company's trailer fleet was 3.31, 3.97, and 4.66 at the end
of 1998, 1999, and 2000, respectively.

     During 2000, the Company purchased 355 new tractors and 51 new trailers and
disposed  of 379 tractors and 127 trailers.  During 2001, the Company expects to
purchase 460 new tractors and 100 new trailers while continuing to sell or trade
older  equipment.

MAINTENANCE

     The  Company  has  a strictly enforced comprehensive preventive maintenance
program  for  the  tractors  and  trailers it operates.  Inspections and various
levels  of  repair  and  preventive  maintenance  are  performed  at set mileage
intervals  on  both  tractors  and  trailers.  Although a significant portion of
maintenance  is  performed  at  the Company's maintenance facility in Tontitown,
Arkansas,  the  Company's subsidiaries have additional maintenance facilities in
Columbia, Mississippi; Springfield, Missouri; Riverdale, New Jersey; Willard and
Warren,  Ohio;  Oklahoma  City, Oklahoma; and Irving, Laredo and El Paso, Texas.
These  facilities  enhance  the  Company's  preventive  and  routine maintenance
operations  and are strategically located on major transportation routes where a
majority  of the Company's freight originates and terminates.  A maintenance and
safety  inspection  is  performed  on  all  vehicles  each time they return to a
terminal.  The  Company's  primary  maintenance  facilities  consist of thirteen
mechanical  repair  bays,  four  body-shop bays and three safety and maintenance
inspection  bays.  The  Company believes that its current maintenance facilities
will  be  adequate  to  accommodate  its  fleet  for  the  foreseeable  future.

     The  Company's  tractors  carry  full warranty coverage of at least 350,000
miles.  Extended  warranties  are  negotiated  with  the  manufacturer and major
component  manufacturer  (i.e.,  engine,  transmission,  differential) for up to
750,000  miles.  Trailers  are  also  warranted  by  the  manufacturer and major
component  manufacturer  for  up  to  five  years.

     Manufacturers  of  tractors  are required to certify that new tractors meet
federal  emission standards and the Company receives such certifications on each
new  tractor  it acquires.  Certain governmental regulations require the Company
to  adhere  to  a  fuel  and  oil  spillage  prevention  plan and to comply with
regulations  concerning  the  discharge  and disposal of waste oil.  The Company
believes  it  is  in  compliance  with  applicable  waste  disposal and emission
regulations.  The  Company also maintains insurance to cover clean up expense in
the  event  of  a  spill.

DRIVERS

     At December 31, 2000, the Company utilized 1,779 drivers in its operations.
All  drivers are recruited, screened, drug tested and trained and are subject to
the  control and supervision of the Company's operations and safety departments.
The  Company's  driver  training  program  stresses the importance of safety and
reliable, on-time delivery.  Drivers are required to report to their dispatchers
daily  and  at  the  earliest possible moment when any condition en route occurs
which  might  delay  their  scheduled  delivery  time.

      The Company's drivers are selected only after strict application screening
and  drug testing.  Before being permitted to operate a vehicle for the Company,
drivers  must  undergo classroom instruction on Company policies and procedures,
safety  techniques  and  proper  operation  of equipment and then must pass both
written  and road tests.  Instruction in defensive driving and safety techniques
continues  after  hiring,  with the Company holding seminars at its terminals in
Tontitown,  Arkansas;  Jacksonville,  Florida; Columbia, Mississippi; Riverdale,
New  Jersey;  Warren,  Ohio; and Oklahoma City, Oklahoma.  The Company currently
employs  approximately 55 persons on a full-time basis in its driver recruiting,
training  and  safety  instruction  programs.

     The Company's drivers are compensated on the basis of miles driven, loading
and  unloading,  extra  stops and layovers in transit.  Drivers can earn bonuses
by  recruiting  other  qualified  drivers who become employed by the Company and
both  cash  and  non-cash  prizes  are  awarded for consecutive periods of safe,
accident-free  driving.

     Intense competition in the trucking industry for qualified drivers over the
last  several years, along with difficulties and added expense in recruiting and
retaining  qualified  drivers,  has  had a negative impact on the industry.  The
Company's  operations  have also been impacted and from time to time the Company
has  experienced  under-utilization  and increased expenses due to a shortage of
qualified  drivers.  Management  places  the  highest  of  priorities  on  the
recruitment  and  retention  of  an  adequate  supply  of  qualified  drivers.

EMPLOYEES

     At  December  31,  2000, the Company employed 2,154 persons, of which 1,779
were  drivers,  108 were maintenance personnel, 116 were employed in operations,
29  were employed in marketing, 55 were employed in safety and personnel, and 67
were  employed  in general  administration and accounting.  The Company also had
117 owner/operators under contract compensated on a per mile basis.  None of the
Company's  employees  are  represented  by  a collective bargaining unit and the
Company believes that its employee relations are good.

REGULATION

     The  Company  is  a  common and contract motor carrier that is regulated by
various  federal  and  state  agencies.  Effective  January  1,  1996,  the  ICC
Termination Act of 1995 (the "Act") abolished the Interstate Commerce Commission
("ICC")  and  established  within  the  Department of Transportation ("DOT") the
Surface  Transportation  Board, which maintains limited oversight authority over
motor  carriers.

     The  Company is subject to safety requirements prescribed by the DOT.  Such
matters  as  weight  and  dimension of equipment are also subject to federal and
state regulations.  All of the Company's drivers are required to obtain national
driver's licenses pursuant to the regulations promulgated by the DOT.  Also, DOT
regulations  impose  mandatory drug and alcohol testing of drivers.  The Company
believes  that  it  is  in  compliance  in all material respects with applicable
regulatory  requirements  relating  to its trucking business and operates with a
"satisfactory"  rating  (the  highest of three grading categories) from the DOT.

     The  trucking  industry  is  subject to possible regulatory and legislative
changes  (such  as increasingly stringent environmental regulations or limits on
vehicle  weight  and  size)  that  may  affect  the economics of the industry by
requiring changes in operating practices or by changing the demand for common or
contract  carrier  services  or the cost of providing truckload services.  These
types  of  future regulations could unfavorably affect the Company's operations.

COMPETITION

     The  trucking  industry  is  highly  competitive.  The  Company  competes
primarily  with other irregular route long-haul truckload carriers, with private
carriage  conducted  by  its  existing and potential customers, and, to a lesser
extent,  with  the  railroads.  Increased  competition  has  resulted  from
deregulation  of  the  trucking  industry  and  has  generally  exerted downward
pressure on prices.  The Company competes on the basis of its quality of service
and  delivery  performance, as well as price.  Many of the other irregular route
long-haul truckload carriers have substantially greater financial resources, own
more  equipment  or  carry  a  larger  total volume of freight than the Company.

EXECUTIVE  OFFICERS

     The  executive  officers  of  the  Company  are  as  follows:

           Name                   Position  with  Company
           ----                   -----------------------
     Robert W. Weaver    President and Chief Executive Officer

     W. Clif Lawson      Executive Vice President and Chief Operating Officer

     Larry J. Goddard    Vice President-Finance, Chief Financial Officer,
                         Secretary and Treasurer

     ROBERT W. WEAVER,  age 50, is a co-founder of the Company and served as its
Vice  President  from  March  1980  to  June  1986.  He  was President and Chief
Operating  Officer  from  June 1986 until he resigned in February 1987.  Between
February  1987  and  September  1989,  he  was self-employed as a transportation
consultant.  In  September 1989, Mr. Weaver returned to the Company as President
and  Chief  Operating  Officer  and  a  director.  On  February 22, 1990, he was
appointed  Chief  Executive  Officer.

     W. CLIF LAWSON,  age 47, has  been  Executive Vice President of the Company
since  August  1989 and Chief Operating Officer since March 1992.  He joined the
Company in June 1984 and served in various operations and sales capacities until
August  1989.

     LARRY J. GODDARD,  age 42,  has  been  Vice  President-Finance  and  Chief
Financial  Officer  since  January  1991 and served as Controller of the Company
from  May  1989  to January 1991.  In addition, he has served as Secretary since
September  1989,  and Treasurer since May 1991.  From November 1987 to May 1989,
he  served  as  General  Accounting  Manager  of  the  Company.

ITEM  2.  PROPERTIES.
---------------------

     The Company's executive offices and primary terminal facilities are located
in  Tontitown,  Arkansas.  The Company's facilities are located on approximately
45  acres  and consist of 79,193 square feet of office space and maintenance and
storage  facilities.  The  Company's  facilities  in  Tontitown are owned by the
Company.

     The  Company's subsidiaries also lease terminal facilities in Jacksonville,
Florida;  Springfield,  Missouri;  Riverdale, New Jersey; Warren, Ohio; Oklahoma
City,  Oklahoma; Memphis, Tennessee; and Laredo, El Paso, and Irving, Texas; the
terminal  facilities  in  Columbia,  Mississippi;  and  Willard, Ohio are owned.
The  leased  facilities  are  leased  primarily  on  a month-to-month basis, and
provide on-the-road  maintenance  and  trailer  drop  and  relay  stations.

     The  Company  has  access  to  trailer  drop  and relay stations in various
locations  across  the  country.  Certain  of these facilities are leased by the
Company on a month-to-month basis from an affiliate of its majority shareholder.

     The  Company  believes  that  all  of the properties owned or leased by the
Company  are  suitable  for  their  purposes  and adequate to meet the Company's
needs.

ITEM  3.  LEGAL  PROCEEDINGS.
-----------------------------

     The  nature  of  the  Company's  business  routinely results in litigation,
primarily involving claims for personal injuries and property damage incurred in
the  transportation  of freight, and management of the Company believes all such
litigation is adequately covered by insurance and that adverse results in one or
more  of  those  cases would not have a material adverse effect on the Company's
financial  condition.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.
----------------------------------------------------------------------

     No  matters  were  submitted  to  a vote of security holders of the Company
during  the  fourth  quarter  ended  December  31,  2000.



                                     PART II


ITEM  5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
--------------------------------------------------------------------------------

The  Company's  Common  Stock  is traded on the Nasdaq National Market under the
symbol PTSI.  The following table sets forth, for the fiscal quarters indicated,
the  range  of  the  high  and low sales price per share for the Common Stock as
quoted on the Nasdaq National Market.

<TABLE>
<CAPTION>
Fiscal  Year  Ended  December  31,  2000
----------------------------------------
                                High            Low
                                ----            ---
<S>                           <C>             <C>
First Quarter                 $ 11.44         $ 8.50
Second Quarter                  11.00           8.00
Third Quarter                   10.63           8.25
Fourth Quarter                  10.00           7.63
</TABLE>

<TABLE>
<CAPTION>
Fiscal  Year  Ended  December  31,  1999
----------------------------------------
                                High            Low
                                ----            ---
<S>                           <C>             <C>
First Quarter                 $ 10.00         $ 7.00
Second Quarter                   9.88           8.94
Third Quarter                   12.88           9.25
Fourth Quarter                  12.13           9.81
</TABLE>

     As  of  March  15,  2001,  the  number  of  stockholders  of  record  was
approximately  284.  The  Company  has not declared or paid any cash dividend on
its  common  stock.  The  policy  of the Board of Directors of the Company is to
retain  earnings  for  the  expansion and development of the Company's business.
Future  dividend policy and the payment of dividends, if any, will be determined
by the Board of Directors in light of circumstances then existing, including the
Company's earnings, financial condition and other factors deemed relevant by the
Board  of  Directors.

ITEM  6.  SELECTED  FINANCIAL  DATA.
------------------------------------

    The following selected financial data should be read in conjunction with the
Consolidated  Financial  Statements and notes thereto included elsewhere herein.

<TABLE>
<CAPTION>
                                                             Years Ended December 31,
                                                2000       1999       1998       1997      1996
                                              ---------------------------------------------------
                                                     (in thousands, except per share amounts)
<S>                                           <C>        <C>        <C>        <C>       <C>
STATEMENT OF OPERATIONS DATA:
Operating revenues                            $205,245   $207,381   $143,164   $127,211  $113,021
                                              ---------------------------------------------------
Operating expenses:
Salaries, wages and benefits                    90,680     90,248     65,169     57,662    52,444
Operating supplies                              37,728     35,246     26,511     24,666    21,909
Rent and purchased transportation               12,542     13,309      1,082      1,655     1,824
Depreciation and amortization                   18,806     18,392     14,003     12,995    11,999
Operating taxes and licenses                    11,140     11,334      8,388      7,581     6,734
Insurance and claims                             8,674      7,945      6,069      5,571     5,004
Communications and utilities                     2,234      2,365      1,583      1,001     1,090
Other                                            3,756      4,388      3,131      2,394     2,077
(Gain) loss on sale or disposal of property        285       (301)       168         71       375
                                              ---------------------------------------------------
Total operating expenses                       185,845    182,926    126,104    113,596   103,456
                                              ---------------------------------------------------
Operating income                                19,400     24,455     17,060     13,615     9,565
Interest expense                                (5,048)    (5,650)    (3,830)    (3,423)   (4,137)
Other                                                -          -          1          -        31
                                              ---------------------------------------------------
Income before income taxes                      14,352     18,805     13,231     10,192     5,459
Income taxes                                     5,694      7,536      5,158      3,892     2,147
                                              ---------------------------------------------------
Net income                                    $  8,658   $ 11,269   $  8,073   $  6,300  $  3,312
                                              ===================================================
Earnings per common share:
Basic                                         $   1.02   $   1.34   $   0.97   $   0.77  $   0.66
                                              ===================================================
Diluted                                       $   1.02   $   1.33   $   0.96   $   0.76  $   0.44
                                              ===================================================
Average common shares outstanding-Basic          8,455      8,393      8,306      8,192     5,035
                                              ===================================================
Average common shares outstanding-Diluted(1)     8,518      8,488      8,444      8,290     7,578
                                              ===================================================

(1) Diluted income per share for 2000, 1999, 1998, 1997 and 1996 assumes the exercise of stock
    purchase warrants and  stock options to purchase an aggregate of 208,602, 262,097, 317,040,
    347,850 and 3,545,280 shares of Common Stock, respectively.
</TABLE>

<TABLE>
<CAPTION>
                                          At December 31,
                               2000     1999    1998     1997    1996
                             -----------------------------------------
                                         (in thousands)
<S>                          <C>      <C>      <C>      <C>      <C>
BALANCE SHEET DATA:
Total assets                 164,518  168,961  126,471  100,688  94,985
Long term debt                42,073   55,617   44,816   28,226  34,938
Shareholders' equity          62,210   53,365   41,457   33,162  26,312
</TABLE>

<TABLE>
<CAPTION>
                                                                     Years Ended December 31,
                                          2000            1999            1998            1997            1996
                                        --------------------------------------------------------------------------
<S>                                     <C>             <C>             <C>             <C>             <C>
OPERATING DATA:
Operating ratio (1)                         90.5%           88.2%           88.1%           89.4%           91.5%
Average number of truckloads per week      5,169           4,885           3,425           2,874           2,437
Average miles per trip                       713             734             767             786             845
Total miles traveled (in thousands)      183,476         186,355         131,847         115,622         102,946
Average miles per tractor                128,936         128,966         125,569         125,404         122,250
Average revenue per tractor per week    $  2,897        $  2,848        $  2,716        $  2,694        $  2,684
Average revenue per loaded mile         $   1.18        $   1.18        $   1.15        $   1.17        $   1.17
Empty mile factor                            5.6%            5.4%            5.5%            5.8%            6.1%


At end of period:
Total company-owned/leased tractors        1,413(2)        1,468(3)        1,127(4)          975(4)          912(5)
Average age of all tractors (in years)      1.72            1.64            1.74            1.94            1.85
Total trailers                             3,759           3,846(6)        2,784(7)        2,678(8)        2,398(9)
Average age of trailers (in years)          4.66            3.97            3.31            2.85            2.60
Number of employees                        2,154           1,899           1,656           1,446           1,438

-----------------------------------
(1)  Total operating expenses as a percentage of total operating revenues.
(2)  Includes 117 owner operator tractors.
(3)  Includes 148 owner operator tractors.
(4)  Includes 94 owner operator tractors.
(5)  Includes 126 owner operator tractors.
(6)  Includes 21 trailers leased from an affiliate of the Company's majority shareholder.
(7)  Includes 46 trailers leased from an affiliate of the Company's majority shareholder.
(8)  Includes 66 trailers leased from an affiliate of the Company's majority shareholder.
(9)  Includes 74 trailers leased from an affiliate of the Company's majority shareholder.
</TABLE>

ITEM  7.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
--------------------------------------------------------------------------------
RESULTS  OF  OPERATIONS.
------------------------

     The  following  table sets forth the percentage relationship of revenue and
expense  items  to  operating  revenues  for  the  periods  indicated.

<TABLE>
<CAPTION>
                                       Percentage of Operating Revenues
                                           Years Ended December 31,

                                             2000   1999   1998
                                             ------------------
<S>                                          <C>    <C>    <C>
Operating revenues                           100%   100%   100%
                                             ------------------
Operating expenses:
Salaries, wages and benefits                 44.2   43.5   45.5
Operating supplies                           18.4   17.0   18.5
Rent and purchased transportation             6.1    6.4    0.8
Depreciation and amortization                 9.2    8.9    9.8
Operating taxes and licenses                  5.4    5.5    5.9
Insurance and claims                          4.2    3.8    4.2
Communications and utilities                  1.1    1.1    1.1
Other                                         1.8    2.1    2.2
(Gain) loss on sale or disposal of property   0.1   (0.1)   0.1
                                             ------------------
Total operating expenses                     90.5   88.2   88.1
                                             ------------------
Operating income                              9.5   11.8   11.9
Interest expense                             (2.5)  (2.7)  (2.7)
                                             ------------------
Income before income taxes                    7.0    9.1    9.2
Federal and state income taxes               (2.8)  (3.6)  (3.6)
                                             ------------------
Net income                                    4.2%   5.5%   5.6%
                                             ==================
</TABLE>

RESULTS  OF  OPERATIONS

2000  COMPARED  TO  1999

     For  the  year  ended  December  31,  2000,  revenues  were $205 million as
compared  to  $207  million  for the year ended December 31, 1999.  The decrease
relates  primarily to a decrease in the average number of tractors from 1,445 in
1999  to  1,423  in  2000.  The  decrease  in  revenue  from  fewer tractors was
partially  offset  by  an  increase  in  the  Company's utilization (revenue per
tractor per work day) which increased 1.6% from $570 in 1999 to  $579  in  2000.

     The  Company's  operating  ratio  increased  from 88.2% in 1999 to 90.5% in
2000.

     Salaries,  wages  and  benefits increased from 43.5% of revenues in 1999 to
44.2%  of  revenues  in  2000.  The increase relates primarily to an increase in
driver pay packages early in the third quarter of 2000.

     Operating supplies and expenses increased from 17.0% of revenues in 1999 to
18.4%  of  revenues  in  2000.  The increase relates primarily to an increase in
fuel costs of 1.3% of revenues net of a fuel surcharge passed to customers.

     Insurance  and  claims  increased  from 3.8% of revenues in 1999 to 4.2% of
revenues  in  2000.  The  increase relates primarily to an increase in rates for
auto liability insurance coverage.

     The  Company's  effective tax rate decreased from 40.1% in 1999 to 39.7% in
2000.

     Net  income  decreased  to  $8.6 million, or 4.2% of revenues, in 2000 from
$11.3  million,  or  5.5%  of  revenues  in  1999,  representing  a  decrease in
diluted net income per share to $1.02 in 2000 from $1.33 in 1999.

1999  COMPARED  TO  1998

     For  the  year  ended  December 31, 1999, revenues  increased 44.9% to $207
million  as  compared to $143 million for the year ended December 31, 1998.  The
Company's  utilization  (revenue  per  tractor per work day) increased 5.0% from
$543 in 1998 to $570 in 1999.

     The  Company's  operating  ratio  increased from 88.1% in 1998 to 88.2% in
1999.

     Salaries,  wages  and  benefits decreased from 45.5% of revenues in 1998 to
43.5%  of  revenues  in  1999.  The  decrease relates primarily to the brokerage
operations  of  Decker Transport in which revenues are generated through the use
of outside transportation services and not Company paid drivers.

     Operating  supplies  and  expenses decreased from 18.5% of revenues in 1998
to  17.0%  of  revenues in 1999.  The decrease, which was partially offset by an
increase  in  fuel  costs, relates primarily to costs associated with the Decker
brokerage  operations  being combined and paid to other transportation companies
in the form of purchased transportation.

     Rent  and purchased transportation increased from 0.8% of revenues in 1998
to  6.4% of revenues in 1999.  The increase relates primarily to the purchase of
transportation services from other transportation companies in order to  support
brokerage operations.

     Depreciation  and  amortization  decreased from 9.8% of revenues in 1998 to
8.9% of revenues in 1999.  The  decrease relates primarily to the utilization of
outside  transportation  companies'  drivers  and  equipment in order to perform
brokerage activities.

     The  Company's  effective tax rate increased from 39.0% in 1998 to 40.1% in
1999.  This  increase  is related to payments made to Decker drivers in the form
of  a per diem which is only partially deductible by the Company for federal and
state income tax purposes.

     Net  income  increased  to $11.3 million, or 5.5% of revenues, in 1999 from
$8.1 million,  or  5.6% of revenues in 1998, representing an increase in diluted
net income per share to $1.33 in 1999 from $.96 in 1998.

LIQUIDITY  AND  CAPITAL  RESOURCES

     During  2000,  the  Company  generated $32.5 million in cash from operating
activities.  The  ratio  of  current assets to current liabilities was .8 at the
end  of  2000, compared to .8 and 1.2 at the end of 1999 and 1998, respectively.

     Investing  activities  used  $17.7  million in cash during 2000 compared to
$47.8  million  and $38.3 million in 1999 and 1998, respectively.  The cash used
in  all  three years related primarily to the purchase of revenue equipment used
in  the  Company's  operations.

     Financing  activities  used $17.9 million in cash during 2000 primarily for
the  payment  of  long-term  debt originally incurred to finance the purchase of
revenue  equipment  used  in  the  Company's  operations.

     The  Company's  principal subsidiary, P.A.M. Transport, Inc., maintains two
$15.0  million lines of credit with separate financial institutions.  These bank
lines  of credit are secured by accounts receivable or revenue equipment and are
subject  to borrowing limitations.   Withdrawals from the lines of credit are at
an  interest rate of LIBOR as of the first day of the month plus either 1.40% or
1.15%.  The  Company's  borrowing  limitations  on  the  two  lines of credit at
December  31,  2000 were $7.2 million and $5.0 million, respectively.  These two
lines  of  credit  are  guaranteed by the Company and mature on May 31, 2002 and
November  30,  2002.  The  Company was in compliance with all provisions of both
agreements  at  December  31,  2000.

     In  addition  to  cash  flow from operations, the Company uses its existing
lines  of  credit  on an interim basis to finance capital expenditures and repay
long-term  debt.  Longer-term transactions, such as installment notes (generally
three  and  four  year  terms at fixed rates) are typically entered into for the
purchase of revenue equipment; however, the Company purchased additional revenue
equipment  during  2000  with  a  cost  of approximately $28.8 million using its
existing  line of credit and cash on hand.  In addition, P.A.M. Transport, Inc.,
entered  into  an  installment  obligation  during  2000  in  the  amount  of
approximately  $4.2  million  in  order  to finance revenue equipment previously
acquired utilizing its line of credit.  This obligation is payable in 48 monthly
installments  at  an  interest  rate  of  7.25%.  The Company's weighted average
interest  rates on all borrowings were 6.75%, 6.73% and 7.68% for 2000, 1999 and
1998,  respectively.

     During 2000, the Company sold or traded revenue equipment for approximately
$12.8  million.  The  Company  plans to replace 100 trailers and 460 tractors in
2001,  which  would  result  in  additional debt of approximately $21.2 million.
Management expects that the Company's existing working capital and its available
lines  of credit will be sufficient to meet the Company's capital commitments as
of  December 31, 2000, to repay indebtedness coming due in the current year, and
to  fund  its  operating  needs  during  fiscal  2001.

INSURANCE

     Auto  liability  and  collision  coverage are generally subject to a $2,500
deductible  per  occurrence  while  cargo  loss  coverage generally has a $1,000
deductible.  The  Company  maintains  a  reserve for estimated losses for claims
incurred, and maintains a reserve for claims incurred but not reported (based on
the  Company's  historical experience).  The Company is fully-insured through an
insurance  company  for  workers'  compensation  coverage in Arkansas, Oklahoma,
Mississippi  and Florida.  The Company continues to be self-insured for workers'
compensation  coverage  in  Ohio  with  excess  coverage  maintained  for claims
exceeding  $350,000.  The  Company has reserved for estimated losses to pay such
claims  as incurred as well as claims incurred but not reported. The Company has
not  experienced  any adverse trends involving differences in claims experienced
versus  claims  estimates  for  workers'  compensation  reserves.  The  Company
contracts  a  third-party  licensed associate of risk management and a certified
Hazard  Control  Manager to develop its workers' compensation reserves using the
Company's  historical  data  of  past injuries.  Letters of credit are held by a
bank  as  security  for  workers'  compensation  claims  in  Arkansas, Oklahoma,
Mississippi,  and Florida, respectively, and two letters of credit are held by a
bank  for  auto  liability  claims.

SEASONALITY

     The  Company's revenues do not exhibit a seasonal pattern, due primarily to
its  varied  customer  mix.  Operating expenses are generally somewhat higher in
the  winter  months,  primarily  due  to decreased fuel efficiency and increased
maintenance  costs  in  cold  weather.

ENVIRONMENTAL

     The  Company  has  no  outstanding  inquiries  with  any  federal  or state
environmental  agency  at  December  31,  2000.

 INFLATION

     Inflation  has  an  impact  on  most  of  the  Company's  operating  costs.
Recently,  the  effect  of  inflation  has  been  minimal.

     Competition for drivers has increased in recent years, leading to increased
labor  costs.  While  increases  in  fuel  and driver costs affect the Company's
operating  costs,  the effects of such increases are not greater for the Company
than  for  other  trucking  concerns.


ITEM  7A.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURE  ABOUT  MARKET  RISK.
---------------------------------------------------------------------------

     The Company is exposed to market risks from changes in interest rates.  The
Company's  two  lines  of credit bear interest at a floating rate equal to LIBOR
plus either 1.40% or 1.15%.  Accordingly, changes in LIBOR, which is effected by
changes  in  interest  rates  generally,  will  affect the interest rate on, and
therefore  the  Company's  costs  under,  the  lines  of  credit.

     The  Company  may  temporarily  invest  excess  cash in money market funds.
Changes in interest rates would not significantly affect the fair value of these
cash  investments.


ITEM  8.  FINANCIAL  STATEMENTS  AND  SUPPLEMENTARY  DATA.
----------------------------------------------------------

     The  following  statements  are  filed  with  this  report:

     Report  of  Independent  Public  Accountants

     Consolidated  Balance  Sheets  -  December  31,  2000  and  1999

     Consolidated  Statements  of  Income -  Years ended December 31, 2000, 1999
     and 1998

     Consolidated Statements of Shareholders' Equity  - Years ended December 31,
     2000, 1999 and 1998

     Consolidated Statements of Cash Flows - Years ended December 31, 2000, 1999
     and 1998

     Notes  to  Consolidated  Financial  Statements


ITEM  9.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING AND
--------------------------------------------------------------------------------
FINANCIAL  DISCLOSURE.
----------------------

     No  response  is  required  to  this  item.



              P.A.M. Transportation Services, Inc. and Subsidiaries

                        Consolidated Financial Statements

                   Years ended December 31, 2000, 1999 and 1998
                  with Report of Independent Public Accountants


                                    CONTENTS

Report of Independent Public Accountants

Audited Consolidated Financial Statements:

Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Shareholders' Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements


                    Report of Independent Public Accountants


To  the  Board  of  Directors  and  Shareholders  of
P.A.M.  Transportation  Services,  Inc.:


We  have  audited  the  accompanying  consolidated  balance  sheets  of  P.A.M.
Transportation  Services,  Inc.  (a Delaware corporation) and subsidiaries as of
December  31,  2000 and 1999, and the related consolidated statements of income,
shareholders'  equity,  and cash flows for each of the three years in the period
ended  December  31,  2000.  These  consolidated  financial  statements  are the
responsibility  of the Company's management. Our responsibility is to express an
opinion  on  these  consolidated  financial  statements  based  on  our  audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to  obtain  reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the  amounts  and  disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made  by  management,  as  well  as  evaluating  the overall financial statement
presentation.  We  believe  that  our  audits provide a reasonable basis for our
opinion.

In  our opinion, the consolidated financial statements referred to above present
fairly,  in  all  material  respects,  the  financial  position  of  P.A.M.
Transportation Services, Inc. and subsidiaries as of December 31, 2000 and 1999,
and  the  results of their operations and their cash flows for each of the three
years  in  the  period  ended  December  31, 2000, in conformity with accounting
principles  generally  accepted  in  the  United  States.


                              ARTHUR  ANDERSEN  LLP

Fayetteville,  Arkansas
  February  9,  2001




<TABLE>
<CAPTION>

                              P.A.M. Transportation Services, Inc.

                                  Consolidated Balance Sheets
                            (thousands, except shares and par value)



                                                                   December 31,
                                                                2000         1999
                                                             -----------------------
<S>                                                          <C>          <C>
Assets
Current assets:
  Cash and cash equivalents                                  $     485    $   3,557
  Accounts receivable:
    Trade                                                       23,291       22,890
    Other                                                          640        1,032
  Operating supplies and inventories                                71           60
  Prepaid expenses and deposits                                  3,426        4,408
  Deferred income taxes                                            401          378
  Income taxes refundable                                          628          113
                                                             -----------------------
Total current assets                                            28,942       32,438

Property and equipment:
  Land                                                           1,337        1,224
  Structures and improvements                                    3,158        3,021
  Revenue equipment                                            173,512      167,012
  Service vehicles                                                 583          667
  Office furniture and equipment                                 6,046        5,578
                                                             -----------------------
                                                               184,636      177,502
  Accumulated depreciation                                     (59,308)     (51,382)
                                                             -----------------------
                                                               125,328      126,120
Other assets:
  Excess of cost over net assets acquired, net of
   accumulated amortization (2000--$1,378; 1999--$973)           8,506        8,911
  Non-competition agreements, net of accumulated
   amortization (2000--$261; 1999--$131)                           131          261
  Other                                                          1,611        1,231
                                                             -----------------------
                                                                10,248       10,403
                                                             -----------------------
Total assets                                                 $ 164,518    $ 168,961
                                                             =======================
</TABLE>

<TABLE>
<CAPTION>

                                                                   December 31,
                                                                2000         1999
                                                             -----------------------
<S>                                                          <C>          <C>
Liabilities and Shareholders' Equity
Current liabilities:
  Trade accounts payable                                     $  10,610    $  11,210
  Accrued expenses                                               8,074        7,674
  Current portion of long-term debt                             17,753       22,271
                                                             -----------------------
Total current liabilities                                       36,437       41,155


Long-term debt, less current portion                            42,073       55,617


Deferred income taxes                                           23,798       18,693


Non-competition agreements                                           -          131


Shareholders' equity:
 Common stock, $.01 par value:
  Authorized shares--20,000,000
  Issued and outstanding shares: 2000-8,469,657;
    1999-8,439,957                                                  85           84
  Additional paid-in capital                                    19,638       19,452
  Retained earnings                                             42,487       33,829
                                                             -----------------------
Total shareholders' equity                                      62,210       53,365
                                                             -----------------------
Total liabilities and shareholders' equity                   $ 164,518    $ 168,961
                                                             =======================

See accompanying notes.

</TABLE>


<TABLE>
<CAPTION>

                             P.A.M. Transportation Services, Inc.

                              Consolidated Statements of Income
                             (thousands, except per share data)

                                                                 Year ended December 31,
                                                               2000       1999       1998
                                                             -------------------------------
<S>                                                          <C>        <C>        <C>
Operating revenues                                           $205,245   $207,381   $143,164
Operating expenses and costs:
 Salaries, wages and benefits                                  90,680     90,248     65,169
 Operating supplies and expenses                               37,728     35,246     26,511
 Rents and purchased transportation                            12,542     13,309      1,082
 Depreciation and amortization                                 18,806     18,392     14,003
 Operating taxes and licenses                                  11,140     11,334      8,388
 Insurance and claims                                           8,674      7,945      6,069
 Communications and utilities                                   2,234      2,365      1,583
 Other                                                          3,756      4,388      3,131
 (Gain) loss on sale or disposal of equipment                     285       (301)       168
                                                             -------------------------------
                                                              185,845    182,926    126,104
                                                             -------------------------------
Operating income                                               19,400     24,455     17,060

Interest expense                                               (5,048)    (5,650)    (3,829)
                                                             -------------------------------
Income before income taxes                                     14,352     18,805     13,231
Federal and state income taxes:
 Current                                                        1,056      2,107      1,323
 Deferred                                                       4,638      5,429      3,835
                                                             -------------------------------
                                                                5,694      7,536      5,158
                                                             -------------------------------
Net income                                                   $  8,658   $ 11,269   $  8,073
                                                             ===============================

Earnings per common share:
   Basic                                                     $   1.02   $   1.34   $    .97
                                                             ===============================
   Diluted                                                   $   1.02   $   1.33   $    .96
                                                             ===============================
Average common shares outstanding:
   Basic                                                        8,455      8,393      8,306
                                                             ===============================
   Diluted                                                      8,518      8,488      8,444
                                                             ===============================
See accompanying notes.
</TABLE>

<TABLE>
<CAPTION>
                                P.A.M. Transportation Services, Inc.

                          Consolidated Statements of Shareholders' Equity
                                           (thousands)

                                                         Additional
                                             Common        Paid-In       Retained
                                             Stock         Capital       Earnings       Total
------------------------------------------------------------------------------------------------
<S>                                         <C>            <C>           <C>           <C>
Balances at December 31, 1997               $      83      $ 18,592      $ 14,487      $ 33,162
 Net income                                         -             -         8,073         8,073
 Exercise of stock options-shares issued            -           175             -           175
 Tax benefits of stock options                      -            47             -            47
------------------------------------------------------------------------------------------------
Balances at December 31, 1998                      83        18,814        22,560        41,457
 Net income                                         -             -        11,269        11,269
 Exercise of stock options-shares issued            1           488             -           489
 Tax benefits of stock options                      -           150             -           150
------------------------------------------------------------------------------------------------
Balances at December 31, 1999                      84        19,452        33,829        53,365
 Net income                                         -             -         8,658         8,658
 Exercise of stock options-shares issued            1           186             -           187
------------------------------------------------------------------------------------------------
Balances at December 31, 2000               $      85      $ 19,638      $ 42,487      $ 62,210
================================================================================================

See accompanying notes.
</TABLE>

<TABLE>
<CAPTION>

                                 P.A.M. Transportation Services, Inc.

                                Consolidated Statements of Cash Flows
                                             (thousands)

                                                                   Year ended December 31,
                                                                2000        1999        1998
                                                             ----------------------------------
<S>                                                          <C>         <C>         <C>
Net income                                                   $   8,658   $  11,269   $   8,073
Adjustments to reconcile net income to net cash provided
 by operating activities:
   Depreciation and amortization                                18,806      18,392      14,003
   Non-competition agreement amortization                          131         427         440
   Provision for deferred income taxes                           4,638       5,429       3,835
   (Gain) loss on sale or disposal of equipment                    285        (301)        168
   Changes in operating assets and liabilities,
    net of acquisition:
    Accounts receivable                                           (242)      2,322      (2,261)
    Prepaid expenses and other assets                              592         563        (724)
    Income taxes refundable                                       (516)        (75)        377
    Trade accounts payable                                        (295)        920        (739)
    Accrued expenses                                               400         609         343
                                                             ----------------------------------
Net cash provided by operating activities                       32,457      39,555      23,515
                                                             ----------------------------------
Investing Activities
Purchases of property and equipment                            (30,732)    (51,480)    (46,119)
Proceeds from sale or disposal of equipment                     12,842      12,668       7,846
Lease payments received on direct financing lease                  231         670           -
Acquisition of business, net of cash acquired                        -      (9,642)          -
                                                             ----------------------------------
Net cash used in investing activities                          (17,659)    (47,784)    (38,273)
                                                             ----------------------------------
Financing Activities
Borrowings under line of credit                                196,472     199,508     173,227
Repayments under line of credit                               (191,295)   (195,559)   (178,449)
Borrowings of long-term debt                                     4,384      24,179      43,785
Repayments of long-term debt                                   (27,158)    (22,589)    (24,017)
Other                                                             (273)        284        (226)
                                                             ----------------------------------
Net cash provided by (used in) financing activities            (17,870)      5,823      14,320
                                                             ----------------------------------
Net decrease in cash and cash equivalents                       (3,072)     (2,406)       (438)
Cash and cash equivalents at beginning of year                   3,557       5,963       6,401
                                                             ----------------------------------
Cash and cash equivalents at end of year                     $     485   $   3,557   $   5,963
                                                             ==================================

See accompanying notes.
</TABLE>

                      P.A.M. Transportation Services, Inc.
                   Notes to Consolidated Financial Statements
                                December 31, 2000

1.  ACCOUNTING  POLICIES

DESCRIPTION  OF  BUSINESS  AND  CONSOLIDATION

P.A.M.  Transportation  Services,  Inc. (the Company), through its subsidiaries,
operates  as  a  truckload  motor  carrier.

The  consolidated  financial  statements include the accounts of the Company and
its  wholly  owned  subsidiaries:  P.A.M.  Transport,  Inc.,  P.A.M.  Dedicated
Services,  Inc.,  Choctaw  Express,  Inc., Allen Freight Services, Inc., T.T.X.,
Inc.,  and  Decker Transport Co., Inc. All significant intercompany accounts and
transactions  have  been  eliminated.

Majority  ownership  of  the  Company  is  held  by  an  affiliate  of  another
transportation  company.

CASH  AND  CASH  EQUIVALENTS

The  Company  considers  all  highly liquid investments with a maturity of three
months  or  less  when  purchased  to  be  cash  equivalents.

TIRE  PURCHASES

Tires  purchased with revenue equipment are capitalized as a cost of the related
equipment.  Replacement  tires  are  included  in  other  current assets and are
amortized  over  a 24-month period.  Amounts paid for the recapping of tires are
expensed  when  incurred.

EXCESS  OF  COST  OVER  NET  ASSETS  ACQUIRED

The  excess of cost over net assets acquired, or goodwill, is being amortized on
a  straight-line  basis  over  25  years. The carrying value of goodwill will be
reviewed  if  the  facts  and circumstances suggest that it may be impaired.  No
reduction  of  goodwill  was  required  in  2000,  1999,  or  1998.

CLAIMS  LIABILITIES

With  respect  to  cargo  loss,  physical damage and auto liability, the Company
maintains adequate insurance coverage to protect it from certain business risks.
These policies are with various carriers and have deductibles ranging from $0 to
$2,500  per  occurrence.


                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


1.  ACCOUNTING  POLICIES  (continued)

During  1998,  the  Company  changed  from  being  self-insured  for  workers'
compensation coverage in Arkansas, Oklahoma, Mississippi and Florida with excess
coverage  maintained  for  claims exceeding $250,000, to being fully-insured for
workers'  compensation  coverage  in  those states.  The Company continues to be
self-insured  for  workers'  compensation coverage in Ohio with  excess coverage
maintained  for  claims  exceeding  $350,000.  The  Company  has  reserved  for
estimated  losses  to pay such claims as incurred as well as claims incurred but
not  reported.  The  Company  has  not  experienced any adverse trends involving
differences  in  claims  experienced  versus  claims  estimates  for  workers'
compensation reserves. The Company contracts a third-party licensed associate of
risk  management  and a certified Hazard Control Manager to develop its workers'
compensation  reserves  using  the  Company's  historical data of past injuries.
Letters  of  credit in the amounts of $100,000, $200,000, $250,000, and $100,000
are  held  by  a  bank as security for workers' compensation claims in Arkansas,
Oklahoma,  Mississippi,  and  Florida,  respectively,  and  letters  of  credit
aggregating  $704,500  are  held  by  a  bank  for  auto  liability  claims.

REVENUE  RECOGNITION  POLICY

The  Company  recognizes  revenue  based  upon  relative  transit  time  in each
reporting  period  with  expenses  recognized  as  incurred.

REPAIRS  AND  MAINTENANCE

Repairs  and  maintenance  costs  are  expensed  as  incurred.

PROPERTY  AND  EQUIPMENT

Property  and  equipment  is recorded at cost. For financial reporting purposes,
the  cost  of  such  property  is  depreciated  principally by the straight-line
method.  For tax reporting purposes, accelerated depreciation or applicable cost
recovery  methods  are  used.  Gains  and  losses  are  reflected in the year of
disposal.   The  following is a table reflecting estimated ranges of asset lives
by  major  class  of  depreciable  assets:

<TABLE>
<CAPTION>
            Asset Class                  Estimated Asset Life
            -----------                  --------------------
<S>                                      <C>
            Revenue Equipment                 3-7 years
            Service Vehicles                  3-5 years
            Office Furniture & Equipment      3-7 years
            Structures & Improvements         5-30 years
</TABLE>


                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


1.  ACCOUNTING  POLICIES  (continued)

INCOME  TAXES

The  Company  applies  the  provisions  of  Statement  of  Financial  Accounting
Standards  No.  109,  Accounting  for Income Taxes (SFAS No. 109).  SFAS No. 109
requires  recognition of deferred tax liabilities and assets for expected future
consequences  of  events  that  have  been  included  in  a  company's financial
statements  or  tax  return.  Under  this  method,  deferred tax liabilities and
assets  are  determined based on the difference between the financial statements
and  the  tax  basis  of  assets  and  liabilities  using  enacted  tax  rates.

BUSINESS  SEGMENT  AND  CONCENTRATIONS  OF  CREDIT  RISK

The  Company  operates  in  one  business segment, motor carrier operations. The
Company  provides  transportation  services  to  customers throughout the United
States  and  portions  of Canada and Mexico. The Company performs ongoing credit
evaluations  and  generally  does  not require collateral. The Company maintains
reserves  for  potential  credit  losses  and  such  losses  have  been  within
management's  expectations.

In 2000, 1999 and 1998, one customer accounted for 33%, 30% and 35% of revenues,
respectively.  A  second  customer  accounted for 10%, 9% and 12% of revenues in
2000,  1999  and  1998,  respectively.  The  Company's  largest  customer  is an
automobile  manufacturer.  The  Company also provides transportation services to
other manufacturers who are suppliers for automobile manufacturers including the
Company's  largest  customer.  As  a  result,  concentration  of  the  Company's
business  within  the automobile industry is greater than the concentration in a
single  customer.  Of  the  Company's revenues for 2000, 1999 and 1998, 50%, 46%
and 53%, respectively, were derived from transportation services provided to the
automobile  manufacturing  industry.

COMPENSATION  TO  EMPLOYEES

Stock  based  compensation  to employees is accounted for based on the intrinsic
value  method  under  Accounting Principles Board Opinion No. 25, Accounting for
Stock  Issued  to  Employees.


                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


1.  ACCOUNTING  POLICIES  (continued)

RECENT  ACCOUNTING  PRONOUNCEMENTS

In  June  1998,  the  Financial  Accounting  Standards Board issued Statement of
Financial  Accounting  Standards  No. 133, Accounting for Derivative Instruments
and  Hedging  Activities,  (SFAS  No.  133),  which  was amended by Statement of
Financial  Accounting  Standards  No.  138,  Accounting  for  Certain Derivative
Instruments  and Certain Hedging Activities - an Amendment of FASB Statement No.
133 (SFAS No. 138).  SFAS No. 133 establishes accounting and reporting standards
requiring  that  every  derivative  instrument  (including  certain  derivative
instruments  embedded  in  other  contracts) be recorded in the balance sheet as
either  an asset or liability measured at its fair value.  SFAS No. 133 requires
that  changes in the derivative's fair value be recognized currently in earnings
unless  specific  hedge  accounting  criteria  are met.  Companies must formally
document,  designate,  and assess the effectiveness of transactions that receive
hedge  accounting.  SFAS  No.  138 amends the accounting and reporting standards
for certain derivative instruments and certain hedging activities, including the
normal  purchases  and  normal  sales  exception.

SFAS  No.  133  is  effective for fiscal years beginning after June 15, 2000 and
must  be  applied  to  (a)  derivative  instruments  and  (b) certain derivative
instruments  embedded  in  hybrid  contracts  that  were  issued,  acquired,  or
substantively  modified after December 31, 1997 (and, at the company's election,
before  January  1, 1998).  The Company adopted SFAS No. 133 on January 1, 2001,
however,  as  of  December  31,  2000, the Company had no outstanding derivative
instruments  or  embedded  derivatives  that were subject to the requirements of
SFAS  No.  133.

RECLASSIFICATIONS

Certain  reclassifications have been made to prior years' consolidated financial
statements  to  conform  to  the  current  year  presentation.

USE  OF  ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted  in  the United States requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying  notes.  Actual  results  could  differ  from  those  estimates.


                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


<TABLE>
<CAPTION>

2.  ACCRUED  EXPENSES
                                                 December 31,
                                                 2000    1999
                                                --------------
                                                 (thousands)
<S>                                             <C>     <C>
Payroll                                         $1,266  $1,019
Accrued Vacation                                   784     793
Taxes                                            1,654   1,645
Interest                                           195     256
Driver escrows                                     818     925
Insurance                                        1,652   1,330
Current portion of non-competition agreements      131     131
Self-insurance claims reserves                   1,574   1,575
                                                --------------
                                                $8,074  $7,674
                                                ==============
</TABLE>

<TABLE>
<CAPTION>


3.  LONG-TERM  DEBT

Long-term  debt  consists  of  the  following:
                                                                 December 31,
                                                                2000     1999
                                                              ----------------
                                                                 (thousands)
<S>                                                           <C>      <C>
Equipment financings (1)                                      $47,496  $69,728
Line of credit with a bank, due May 31, 2002 and
 collateralized by accounts receivable(2)                       4,127    3,949
Line of credit with a bank, due November 30, 2002 and
 collateralized by revenue equipment(3)                         5,000        -
Note payable (4)                                                2,602    3,348
Other financings (5)                                              601      863
                                                              ----------------
                                                               59,826   77,888
Less current maturities                                        17,753   22,271
                                                              ----------------
                                                              $42,073  $55,617
                                                              ================
</TABLE>

(1) Equipment  financings  consist  of  installment  obligations for revenue and
service  equipment  purchases,  payable  in various monthly installments through
2004,  at  a  weighted  average  interest  rate  of  6.75% and collateralized by
equipment  with  a net book value of approximately $54.9 million at December 31,
2000.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


3.  LONG-TERM  DEBT  (continued)

(2) The  line  of  credit  agreement with a bank provides for maximum borrowings
of  $15.0  million  and  contains  certain  restrictive  covenants  that must be
maintained  by  the  Company on a consolidated basis.  Borrowings on the line of
credit  are  at  an interest rate of LIBOR as of the first day of the month plus
1.40%.  The  Company  was  in compliance with all provisions of the agreement at
December  31,  2000.

(3) The  line  of  credit  agreement with a bank provides for maximum borrowings
of  $15.0  million  and  contains  certain  restrictive  covenants  that must be
maintained  by  the  Company on a consolidated basis.  Borrowings on the line of
credit  are  at  an interest rate of LIBOR as of the first day of the month plus
1.15%.  The  Company  was  in compliance with all provisions of the agreement at
December  31,  2000.

(4) 6.0%  note  to  the  former owner of Decker Transport Company, Inc., payable
in  monthly installments of $77,216 through January 2004 and secured by a letter
of  credit  from  a  bank  in  the  amount  of  $1,300,000.

(5) Various  notes  with  interest  rates  ranging  from 6.0% to 8.0% payable in
monthly  installments  through  December  2005.

Scheduled  annual  maturities on long-term debt outstanding at December 31, 2000
are:
                                                (thousands)
              2001                               $  17,753
              2002                                  27,744
              2003                                  10,724
              2004                                   3,562
              2005                                      43
                                                 ---------
                                                 $  59,826
                                                 =========
Interest  payments of approximately $5.1 million, $5.5 million, and $3.8 million
were  made  during  2000,  1999  and  1998,  respectively.


                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


4.  INCOME  TAXES

Under  SFAS  No.  109,  deferred  income  taxes  reflect  the net tax effects of
temporary differences between the carrying amounts of assets and liabilities for
financial  reporting  purposes and the carrying amounts for income tax purposes.

Significant  components of the Company's deferred tax liabilities and assets are
as  follows:

<TABLE>
<CAPTION>
                                             December 31,
                                          2000         1999
                                        ---------------------
                                              (thousands)
<S>                                     <C>           <C>
Deferred tax liabilities:
  Property and equipment                $29,301       $25,107
  Prepaid expenses                        1,722         1,558
                                        ---------------------
Total deferred tax liabilities           31,023        26,665

Deferred tax assets:
  Alternative minimum tax credit          4,785         4,659
  Investment credit carryovers              355         1,096
  Allowance for doubtful accounts           249           249
  Vacation reserves                         297           278
  Self-insurance reserves                 1,225         1,105
  Non-competition agreement                 515           691
  Other                                     200           272
                                        ---------------------
Total deferred tax assets                 7,626         8,350
                                        ---------------------
Net deferred tax liabilities            $23,397       $18,315
                                        =====================
</TABLE>

The  reconciliation  between  the  effective  income  tax rate and the statutory
Federal  income  tax  rate  is  presented  in  the  following  table:

<TABLE>
<CAPTION>
                                                     Year Ended December 31,
                                                     2000     1999     1998
                                                   -------------------------
                                                          (thousands)
<S>                                                <C>      <C>      <C>
Income tax at the statutory Federal rate of 34%    $4,879   $6,394   $4,499
Nondeductible expenses                                311      330       60
State income taxes                                   (195)     (82)     (85)
Other                                                (336)    (255)    (329)
                                                   -------------------------
Federal income taxes                                4,659    6,387    4,145
State income taxes                                  1,035    1,149    1,013
                                                   -------------------------
Total income taxes                                 $5,694   $7,536   $5,158
                                                   =========================
Effective tax rate                                   39.7%    40.1%    39.0%
                                                   =========================
</TABLE>

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


4.  INCOME  TAXES  (continued)

The  current  income  tax  provision  consists  of  the  following:

<TABLE>
<CAPTION>
                                                    2000     1999     1998
                                                   -------------------------
                                                          (thousands)
<S>                                                <C>      <C>      <C>
Federal                                            $  656   $1,866   $1,073
State                                                 400      241      250
                                                   -------------------------
                                                   $1,056   $2,107   $1,323
                                                   =========================
</TABLE>

As  of  December  31,  2000, the Company has investment tax credit carryovers of
approximately  $355,000,  which  begin  expiring  in  2001.  The  current  taxes
provided  in 2000, 1999 and 1998 result from alternative minimum taxable income.
The Company has alternative minimum tax credits of approximately $4.8 million at
December  31,  2000,  which  carryover  indefinitely.

Income  taxes  paid  totaled approximately $1,100,000, $2,200,000 and $1,200,000
for  the  years  ended  December  31,  2000,  1999  and  1998,  respectively.

5.  SHAREHOLDERS'  EQUITY

The  Company  maintains  an incentive stock option plan and a nonqualified stock
option  plan  for  the issuance of options to directors, officers, key employees
and others.  During 1998, the incentive stock option plan was amended to include
an  additional  400,000  shares available for future granting.  The option price
under  these plans is the fair market value of the stock at the date the options
were granted, ranging from $5.75 to $10.63 as of December 31, 2000.  At December
31,  2000,  approximately  630,000  shares  were  available  for granting future
options.

Outstanding  incentive  stock  options  at  December 31, 2000, must be exercised
within six years from the date of grant and vest in increments of 20% each year.
Outstanding  nonqualified  stock  options at December 31, 2000 must be exercised
within  five  to six years and certain nonqualified options may not be exercised
within  one  year  of  the  date  of  grant.


                  P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


5.  SHAREHOLDERS'  EQUITY  (continued)

Transactions  in  stock  options  under  these  plans are summarized as follows:

<TABLE>
<CAPTION>
                                           Shares
                                           Under
                                           Option    Price Range
                                          -----------------------
<S>                                       <C>        <C>
Outstanding at December 31, 1997           342,850   $2.38-$7.38
  Granted                                   33,000   $9.25-$10.63
  Exercised                                (49,800)  $2.38-$5.75
                                          ------------------------
Outstanding at December 31, 1998           326,050   $2.38-$10.63
  Granted                                   55,000   $8.63-$10.25
  Exercised                               (115,000)  $2.38-$6.00
  Canceled                                  (1,050)  $2.38
                                          ------------------------
Outstanding at December 31, 1999           265,000   $5.75-$10.63
  Granted                                   10,000   $9.13
  Exercised                                (29,700)  $5.75-$6.75
  Canceled                                  (5,000)  $7.38-$9.13
                                          ------------------------
Outstanding at December 31, 2000           240,300   $5.75-$10.63
                                          ========================

Options exercisable at December 31, 2000   201,300
                                          =========
</TABLE>

The following is a summary of stock options outstanding as of December 31, 2000:

<TABLE>
<CAPTION>
                         Weighted
              Option     Average
  Options    Exercise    Remaining    Options
Outstanding   Price      Years      Exercisable
-----------------------------------------------
<S>          <C>         <C>        <C>
130,000      $ 5.75         .5          130,000
  3,000      $ 7.38        1.2            3,000
  5,000      $ 6.50        1.4            5,000
  6,300      $ 5.75        1.5            6,300
  2,000      $ 6.00        2.2            2,000
  3,000      $10.63        3.2            3,000
 30,000      $ 9.25        3.6           18,000
  8,000      $ 8.63        4.2            8,000
 45,000      $10.25        4.6           18,000
  8,000      $ 9.13        5.2            8,000
-----------------------------------------------
240,300                                 201,300
===============================================
</TABLE>

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


5.  SHAREHOLDERS'  EQUITY  (continued)

The  Company  adopted  the  disclosure-only provisions of Statement of Financial
Accounting Standards No. 123, Accounting for Stock-Based Compensation ("SFAS No.
123").  Accordingly,  no  compensation  cost  has  been recognized for the stock
option  plans.  Had  compensation cost for the Company's stock option plans been
determined  consistent  with  the  provisions of SFAS No. 123, the Company's net
income  and  earnings per share would have been reduced to the pro forma amounts
indicated  below:

<TABLE>
<CAPTION>
                                  2000       1999
                                 -----------------
                                     (thousands)
<S>                              <C>       <C>
Net income:
 As reported                     $8,658    $11,269
 Pro forma                       $8,542    $11,076

Earnings per share as reported:
 Basic                           $1.02     $1.34
 Diluted                         $1.02     $1.33
Pro forma earnings per share:
 Basic                           $1.01     $1.32
 Diluted                         $1.00     $1.31

</TABLE>

The  fair value of each option grant is estimated on the date of grant using the
Black-Scholes  option  pricing  model  with  the  following  weighted  average
assumptions:  dividend  yield  of  0%;  expected volatility of 31.63% to 76.64%;
risk-free  interest  rate  of  5.25% to 7.02%; and expected lives of five years.

6.  EARNINGS  PER  SHARE

The  Company  applies  Financial  Accounting  Standards Board Statement No. 128,
Earnings  Per  Share,  for  computing  and presenting earnings per share.  Basic
earnings  per  common share were computed by dividing the income by the weighted
average  number  of  shares outstanding during the period.  Diluted earnings per
share  were  calculated  as  follows:

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


6.  EARNINGS  PER  SHARE  (continued)

<TABLE>
<CAPTION>
                                                                     2000        1999        1998
                                                                   --------------------------------
                                                                  (thousands, except per share data)
<S>                                                                <C>         <C>          <C>
Actual net income (A)                                              $ 8,658     $11,269      $8,073
                                                                   ================================

Assumed exercise of options and warrants                               209         262         317
Application of assumed proceeds ($1,375,
  $1,621 and $1,606, respectively)
  toward repurchase of stock at an average
  market price of $9.430, $9.719 and
  $8.958 per share, respectively.                                     (146)       (167)       (179)
                                                                   --------------------------------
Net additional shares issuable                                          63          95         138
                                                                   ================================
Adjustment of shares outstanding:
  Weighted average common shares outstanding                         8,455       8,393       8,306
  Net additional shares issuable                                        63          95         138
                                                                   --------------------------------
  Adjusted shares outstanding (B)                                    8,518       8,488       8,444
                                                                   ================================
Diluted earnings per common share - (A) divided by (B)             $  1.02      $ 1.33      $  .96
                                                                   ================================
</TABLE>

7.  PROFIT  SHARING  PLAN

P.A.M.  Transport,  Inc.  sponsors  a profit sharing plan for the benefit of all
eligible  employees.  The  plan  qualifies  under Section 401(k) of the Internal
Revenue  Code  thereby  allowing  eligible  employees  to  make  tax  deductible
contributions to the plan. The plan provides for employer matching contributions
of  50%  of  each  participant's  voluntary  contribution  up  to  3%  of  the
participant's  compensation.  Total  contributions  to  the  plan  totaled
approximately  $255,000,  $200,000  and  $133,000  in  2000,  1999  and  1998,
respectively.

8.  LITIGATION

The  Company  is  not  a party to any pending legal proceedings which management
believes  to  be  material to the financial position or results of operations of
the Company. The Company maintains liability insurance against risks arising out
of  the  normal  course  of  its  business.


                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


9.  QUARTERLY  RESULTS  OF  OPERATIONS  (Unaudited)

The  tables  below  present  quarterly  financial information for 2000 and 1999:

<TABLE>
<CAPTION>
                                                                  2000
                                                           Three Months Ended
                                       March 31         June 30       September 30      December 31
                                    ---------------------------------------------------------------
                                                   (thousands, except per share data)
<S>                                 <C>              <C>              <C>              <C>
Operating revenues                  $   54,147       $   53,034       $   47,100       $   50,964
Operating expenses                      49,253           46,965           43,749           45,878
                                    ---------------------------------------------------------------
Operating income                         4,894            6,069            3,351            5,086
Other expenses - net                     1,354            1,368            1,184            1,142
Income taxes                             1,412            1,881              823            1,578
                                    ---------------------------------------------------------------
Net income                          $    2,128       $    2,820       $    1,344       $    2,366
                                    ===============================================================
Net income per common share:
     Basic                          $      .25       $      .33       $      .16       $      .28
                                    ===============================================================
     Diluted                        $      .25       $      .33       $      .16       $      .28
                                    ===============================================================
Average common shares outstanding:
     Basic                               8,440            8,444            8,465            8,470
                                    ===============================================================
     Diluted                             8,515            8,515            8,525            8,520
                                    ===============================================================

</TABLE>

<TABLE>
<CAPTION>
                                                                  1999
                                                           Three Months Ended
                                       March 31         June 30       September 30      December 31
                                    ---------------------------------------------------------------
                                                   (thousands, except per share data)
<S>                                 <C>              <C>              <C>              <C>
Operating revenues                  $   51,391       $   53,675       $   51,284       $   51,032
Operating expenses                      45,241           46,608           45,228           45,850
                                    ---------------------------------------------------------------
Operating income                         6,150            7,067            6,056            5,182
Other expenses - net                     1,404            1,479            1,413            1,354
Income taxes                             1,938            2,294            1,849            1,455
                                    ---------------------------------------------------------------
Net income                          $    2,808       $    3,294       $    2,794       $    2,373
                                    ===============================================================
Net income per common share:
     Basic                          $      .34       $      .39       $      .33       $      .28
                                    ===============================================================
     Diluted                        $      .33       $      .39       $      .33       $      .28
                                    ===============================================================
Average common shares outstanding:
     Basic                               8,342            8,378            8,421            8,445
                                    ===============================================================
     Diluted                             8,441            8,458            8,527            8,535
                                    ===============================================================

</TABLE>


                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


10.  FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS

The  following  methods  and  assumptions were used by the Company in estimating
fair  value  disclosures  for  financial  instruments:

Cash  and  cash  equivalents - The carrying amount reported in the balance sheet
for  cash  and  cash  equivalents  approximates  fair  value.

Long-term  debt  - The fair values of the Company's long-term debt are estimated
using  discounted cash flow analyses, based on the Company's current incremental
borrowing  rates  for  similar  types  of  borrowing  arrangements.

Lines  of  credit - The carrying amount for the line of credit approximates fair
value.

The  carrying  amounts and fair values of the Company's financial instruments at
December  31  are  as  follows  (in  thousands):

<TABLE>
<CAPTION>
                                   2000                   1999
----------------------------------------------------------------------
                           Carrying     Fair      Carrying     Fair
                            Amount      Value      Amount      Value
----------------------------------------------------------------------
<S>                        <C>         <C>        <C>         <C>
Cash and cash equivalents  $   485     $   485    $ 3,557     $ 3,557
Long-term debt              50,699      50,305     73,939      73,705
Lines of credit              9,127       9,127      3,949       3,949
======================================================================
</TABLE>

11.  ACQUISITION

On January 11, 1999, the Company closed the purchase of substantially all of the
assets  and  assumed  certain  liabilities  of  Decker  Transport  Co.,  Inc., a
truckload  carrier  located  in  New Jersey.  The Company acquired assets, which
consisted primarily of revenue equipment and trade accounts receivable, totaling
approximately  $21.0  million and assumed liabilities, which consisted primarily
of  installment  note  obligations  and  trade  accounts  payable,  totaling
approximately  $14.1  million.  In connection with this acquisition, the Company
issued  to  the  seller  an installment note in the amount of $4.0 million at an
interest  rate  of  6%  and  paid  cash  of approximately $9.8 million utilizing
existing  cash  and  its  line  of  credit.

The  purchase  price has been allocated to assets and liabilities based on their
estimated fair values as of the date of acquisition.  Goodwill was recorded as a
result  of  the  purchase  allocation  and  it is being amortized over a 25-year
period.  The  Company  also  entered  into three-year Non-competition Agreements
with  eight  shareholders  or  officers/employees  of Decker Transport Co., Inc.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


11.  ACQUISITION  (continued)

The  acquisition  has  been  accounted  for under the purchase method, effective
January  11,  1999,  with  the  operations  of  Decker included in the Company's
financial  statements since that date.  Actual fiscal 1999 operating results are
representative  of  1999 pro forma amounts.  The following fiscal 1998 pro forma
financial  information is based on the audited consolidated financial statements
of P.A.M. Transportation Services, Inc. for the year ended December 31, 1998 and
from the audited combined financial statements of Decker Transport Co., Inc. and
Van  Houten  Ltd.  for  the  year ended December 31, 1998 and adjusted as if the
acquisition  had occurred on January 1, 1998, with certain assumptions made that
management  believes  to  be  reasonable.  This  information  is for comparative
purposes only and does not purport to be indicative of the results of operations
that  would have occurred had the transaction been completed at the beginning of
the  period  or  indicative  of  the  results  that  may  occur  in  the future.

<TABLE>
<CAPTION>
                                           1998
                                        (unaudited)
                                    ------------------
                                    (thousands, except
                                      per share data)
<S>                                 <C>
Operating revenue                      $   191,616
Income from operations                      17,402
Income before income tax provision          11,813
Net income                                   7,239
Earnings per share -basic                      .87
Earnings per share -diluted                    .86

Weighted average shares -basic               8,306
Weighted average shares -diluted             8,444
</TABLE>

                                    PART III

     Except  as  to  information  with  respect  to  executive officers which is
contained  in a separate heading under Item 1 to this Form 10-K, the information
required  by  Part III of Form 10-K is, pursuant to General Instruction G (3) of
Form  10-K,  incorporated  by  reference  from  the  Company's  definitive proxy
statement  to  be  filed  pursuant  to  Regulation  14A for the Company's Annual
Meeting  of  Shareholders to be held on May 31, 2001.  The Company will, within
120  days  of  the end of its fiscal year, file with the Securities and Exchange
Commission  a  definitive  proxy  statement  pursuant  to  Regulation  14A.

ITEM  10.  DIRECTORS  AND  EXECUTIVE  OFFICERS  OF  THE  REGISTRANT.
--------------------------------------------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section  entitled "Election of Directors" contained in the proxy statement.

ITEM  11.  EXECUTIVE  COMPENSATION.
-----------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section entitled "Executive Compensation" contained in the proxy statement.

ITEM  12.  SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS  AND MANAGEMENT.
--------------------------------------------------------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section  entitled  "Security  Ownership  of  Certain  Beneficial Owners and
Management"  contained  in  the  proxy  statement.

ITEM  13.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS.
--------------------------------------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section entitled "Certain Relationships and Related Transactions" contained
in  the  proxy  statement.


                                     PART IV

ITEM  14.  EXHIBITS,  FINANCIAL  STATEMENT  SCHEDULES,  AND REPORTS ON FORM 8-K.
--------------------------------------------------------------------------------

(a)1.   Financial  Statements  and  Auditors'  Report.
        ----------------------------------------------

     The  following  financial  statements  and auditors' report have been filed
as Item 8 in Part II of this report:

        Report of Independent Public Accountants

        Consolidated Balance Sheets - December 31, 2000 and 1999

        Consolidated Statements of Income - Years ended December 31, 2000,
        1999 and 1998

        Consolidated Statements of Shareholders' Equity - Years ended
        December 31, 2000, 1999 and 1998

        Consolidated Statements of Cash Flows - Years ended December 31,
        2000, 1999 and 1998

        Notes to Consolidated Financial Statements

(a)2.   Financial  Statement  Schedules.
        --------------------------------

     The  following  supporting  financial statement schedule is filed with this
report:

        II- Valuation  and Qualifying Accounts - Years  Ended December 31, 2000,
            1999 and 1998

     All other schedules are omitted as the required information is inapplicable
or  the  information  is  presented  in the consolidated financial statements or
related notes.

(a)3.   Exhibits.
        ---------

     The  following  exhibits  are  filed with or incorporated by reference into
this  report.  The  exhibits  which  are  denominated  by  an  asterisk (*) were
previously  filed  as  a  part of, and are hereby incorporated by reference from
either (i) the Form S-1 Registration Statement under the Securities Act of 1933,
as  filed  with  the  Securities  and  Exchange  Commission  on  July  30, 1986,
Registration  No.  33-7618,  as amended on August 8, 1986, September 3, 1986 and
September  10,  1986  ("1986  S-1"); (ii) the Annual Report on Form 10-K for the
year ended December 31, 1987 ("1987 10-K"); (iii) the Annual Report on Form 10-K
for the year ended December 31, 1992 ("1992 10-K"); (iv) the Quarterly Report on
Form  10-Q  for  the  quarter  ended  June  30,  1994  ("6/30/94 10-Q"); (v) the
Quarterly  Report  on  Form  10-Q  for the quarter ended June 30, 1995 ("6/30/95
10-Q");  (vi)  the Quarterly Report on Form 10-Q for the quarter ended September
30, 1996 (9/30/96 10-Q); (vii) the Annual Report on Form 10-K for the year ended
December 31, 1996 ("1996 10-K"); or (viii) the Quarterly Report on Form 10-Q for
the  quarter ended June 30, 1998 ("6/30/98 10-Q").

Exhibit#                              Description  of  Exhibit
--------     -------------------------------------------------------------------
*3.1         Amended  and  Restated  Certificate  of  Incorporation  of  the
             Registrant  (Exh.  3.1,  1986  S-1)

*3.1.1       Amendment to Certificate of Incorporation dated June 24, 1987
             (Exh.  3.1.1,  1987  10-K)

*3.2         Amended and Restated By-Laws of the Registrant (Exh. 3.2, 1986 S-1)

*3.2.1       Amendment  to  Article I,  Section 3 of Bylaws of Registrant (Exh.
             3.2.1,  1986  S-1)

*3.2.2       Amendments to Bylaws of Registrant adopted May 7, 1987 (Exh. 3.2.2,
             1987  10-K)

*3.2.3       Amendments  to  Bylaws  of Registrant adopted January 4, 1993 (Exh.
             3.2.3,  1992  10-K)

*4.1         Specimen  Stock  Certificate  (Exh.  4.1,  1986  S-1)

*4.2         Loan  Agreement  dated  July 26,  1994  among  First Tennessee Bank
             National  Association,  Registrant  and  P.A.M.  Transport,  Inc.
             together with Promissory  Note  (Exh.  4.1,  6/30/94  10-Q)

*4.2.1       Security  Agreement  dated  July  26,  1994 between First Tennessee
             Bank  National  Association  and  P.A.M.  Transport, Inc.(Exh. 4.2,
             6/30/94  10-Q)

*4.3         First  Amendment  to Loan Agreement date June 27, 1995 by and among
             P.A.M.  Transport,  Inc., First Tennessee Bank National Association
             and P.A.M. Transportation Services, Inc., together with  Promissory
             Note  in  the  principal  amount of $2,500,000 (Exh. 4.1.1, 6/30/95
             10-Q)

*4.3.1       First  Amendment  to  Security Agreement dated June 28, 1995 by and
             between  P.A.M.  Transport,  Inc. and First Tennessee Bank National
             Association (Exh.  4.2.2,  6/30/95  10-Q)

*4.3.2       Security  Agreement  dated  June  27,  1995  by and between Choctaw
             Express,  Inc.  and First Tennessee Bank National Association (Exh.
             4.1.3, 6/30/95 10-Q)

*4.3.3       Guaranty  Agreement  of  P.A.M. Transportation Services, Inc. dated
             June 27, 1995 in favor of First Tennessee Bank National Association
             respecting $10,000,000 line of credit (Exh.  4.1.4,  6/30/95  10-Q)

*4.4         Second  Amendment to Loan Agreement dated July 3, 1996 by and among
             P.A.M.  Transport,  Inc., First Tennessee Bank National Association
             and P.A.M. Transportation Services, Inc., together with  Promissory
             Note in the principal amount of  $5,000,000  (Exh.  4.1.1,  9/30/96
             10-Q)

*4.4.1       Second  Amendment  to  Security Agreement dated July 3, 1996 by and
             between  P.A.M.  Transport,  Inc. and First Tennessee National Bank
             Association (Exh.  4.1.2,  9/30/96  10-Q)

*4.4.2       First  Amendment  to Security  Agreement  dated July 3, 1996 by and
             between  Choctaw  Express,  Inc.  and First Tennessee Bank National
             Association(Exh.  4.1.3,  9/30/96  10-Q)

*4.4.3       Security  Agreement dated July 3, 1996 by and between Allen Freight
             Services,  Inc.  and  First  Tennessee  Bank  National  Association
             (Exh. 4.1.4,  9/30/96  10-Q)

             No  other  long-term  debt  instrument  of  the  Registrant  or its
             subsidiaries  authorizes  indebtedness  exceeding  10% of the total
             assets of the Registrant and its  subsidiaries  on  a  consolidated
             basis  and  the  Registrant  hereby  undertakes  to  provide  the
             Commission  upon  request  with  any long-term debt instrument not
             filed herewith.

*10.1        Employment  Agreement  between the Registrant  and Robert W. Weaver
             dated  July  1,  1998  (Exh.  10.1,  6/30/98  10-Q)

*10.2        1995  Stock  Option  Plan, effective June 29, 1995 (Exh. 10.6, 1996
             10-K)

 21.1        Subsidiaries  of  the  Registrant

 23.1        Consent  of  Arthur  Andersen  LLP


(b)  Reports  on  Form  8-K.
     -----------------------

     No  reports on Form 8-K were filed during the fourth quarter ended December
31, 2000.


SCHEDULE II

<TABLE>

                                         P.A.M. TRANSPORTATION SERVICES, INC.
                                          VALUATION AND QUALIFYING ACCOUNTS

                                     Years Ended December 31, 2000, 1999 and 1998

<CAPTION>
                                                      ADDITIONS
                                                      ---------
                                                                   Charged to
                                         Balance at   Charged to     Other                    Balance
                                          Beginning   Costs and     Accounts    Deductions     at End
               Description                of Period    Expenses    (Describe)   (Describe)   of Period
               -----------               ----------   ----------   ----------   ----------   ---------
<S>                                      <C>          <C>          <C>          <C>          <C>
2000 - Allowance for doubtful accounts     $655,043           --      $ 1,389           --    $656,432
1999 - Allowance for doubtful accounts      579,333           --       75,710           --     655,043
1998 - Allowance for doubtful accounts      579,333           --           --           --     579,333
</TABLE>


SIGNATURES
----------

     Pursuant  to  the requirements of Section 13 of the Securities Exchange Act
of 1934, the Registrant has caused this report to be signed on its behalf by the
undersigned,  thereunto  duly  authorized.

                                            P.A.M. TRANSPORTATION SERVICES, INC.


Dated: March 27, 2001         By:   /s/ Robert W. Weaver
                                   -----------------------------
                                   ROBERT W. WEAVER
                                   President and Chief Executive Officer
                                   (principal  executive  officer)

Dated: March 27, 2001         By:   /s/ Larry J. Goddard
                                   -----------------------------
                                   LARRY J. GODDARD
                                   Vice President - Finance, Chief Financial
                                   Officer, Secretary and Treasurer (principal
                                   financial and accounting officer)

     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
report  has been signed by the following persons on behalf of the Registrant and
in  the  capacities  and  on  the  dates  indicated:

                                            P.A.M. TRANSPORTATION SERVICES, INC.


Dated: March 27, 2001         By:   /s/ Robert W. Weaver
                                   ----------------------------
                                   ROBERT W. WEAVER
                                   President and Chief Executive Officer,
                                   Director


Dated: March 27, 2001         By:   /s/ Matthew T. Moroun
                                   ----------------------------
                                   MATTHEW T. MOROUN, Director


Dated: March 27, 2001         By:   /s/ Daniel C. Sullivan
                                   ----------------------------
                                   DANIEL C. SULLIVAN, Director


Dated: March 27, 2001         By:   /s/ Charles F. Wilkins
                                   ----------------------------
                                   CHARLES F. WILKINS, Director


Dated: March 27, 2001         By:   /s/ Frederick P. Calderone
                                   ----------------------------
                                   FREDERICK P. CALDERONE, Director


EXHIBIT INDEX


Exhibit No.                      Description
------------          ----------------------------------
21.1                  Subsidiaries of the Registrant
23.1                  Consent of Arthur Anderson LLP