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How UPS, Fed Ex Move 25 Million Packages a Day

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Published: Friday, 20 Jan 2012 | 11:48 AM ET
Brian Shactman By:

CNBC Reporter

UPS Airlines Cuts Fuel Costs
UPS saves millions of dollars each year in fuel costs using technologies to make their fleet more efficient.

And when you watch the packages stream by at one in the morning, it's easy to see where the growth is: Online retail.

Boxes branded with Wal-Mart, Dell, Hewlett Packard ... Amazon.

"They comprise a lot of our business," said Mike Nepaul, who runs Worldport for UPS. "We'll probably do about 20-40 percent of their volume here, depending on the day."

And during peak times like the holidays, the nightly sort brings added pressure. Mistakes mean presents don't get delivered.

"It's about twice the freight, so I'll say it's about twice the stress," said Chuck Bryson who uses remote controls and more than 250 cameras to route packages throughout the Fed Ex facility in Memphis.

No matter the stress level surrounding the 25 million combined packages delivered by the two shipping giants, the goal is to make customers notice one thing: an on-time and un-damaged delivery. And more than 99 percent of the time, that is the case.

Follow Brian Shactman on Twitter: @bshactman

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CNBC's Brian Shactman goes inside the mad dash to move more than 25-million packages a day. It’s a revealing look at a complex system of jaw dropping automation at industry giants UPS and Fed Ex.

   
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  • Shactman joined CNBC in 2007 as a general assignment reporter and fill-in anchor for CNBC's business day programming.