A traffic scheduling system and method for packet-switched communications networks where multiple sessions share an outgoing communications link. Prior to transmission on the outgoing link, packets are assigned a time-stamp and placed into a priority queue in order of ascending time-stamps so that the packet with the smallest time-stamp is placed at the head of the queue. The time-stamp assigned to a particular packet is calculated as the estimated time at which the last bit of the packet is transmitted in an ideal system, using a global variable called the system potential which tracks the progress of work in the scheduling system. The system potential is recalibrated periodically to avoid any long-term unfairness in service offered to the sessions sharing the outgoing link.