(NYSE: UPS) and FedEx (NYSE: FDX) are attractive stocks but continue facing volume and pricing challenges in 2024. That said, there's evidence to suggest that they are overcoming these issues, and they could both have excellent second halves of the calendar year. Here's why.

Like much of the economy, the package delivery market has had highly unusual dynamics in recent years. UPS management expressed this during its Investor Day presentation in late March, describing the market as laid out in the table below.

From 2018 to 2020, there was a normal period of excess capacity in the market, which was good for meeting demand spikes and keeping customers happy without resorting to the expensive purchase of third-party transportation. However, demand surged due to the lockdowns, and supply struggled to grow as the same lockdowns caused capacity restraints.

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Source Fool.com