Forwarded packages are handled the same way as forwarded letters. They go to a unit called "CFS" where the old address is keyed into the system and a yellow label with the new address is printed. The letter or parcel is then put back into the mail stream and goes on to it's original destination.
The CFS unit for the office I work at USED TO BE 6 miles away. With consolidation it's now 130 miles away. They have increased volume and decreased staff so it's taking a lot longer.
If you have the same zip code and only moved a block away, you might still have the same mail carrier. In my office we would just deliver that parcel instead of forwarding it, unless the sender included an endorsement asking for it to be returned. If you have the same carrier, remember the service you got when it comes to Christmas gifts.
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