A method for dynamically adjusting the flow rate of a plurality of logical pipes that share a common output queue. In accordance with the method of the present invention, a minimum flow rate and a maximum flow rate are set for each of the pipes. Next a determination is made of whether or not excess queue bandwidth exists in accordance with the output flow rate of the shared queue. The determination of whether or not excess bandwidth exists comprises comparing the output flow rate of the shared queue with a pre-determined threshold queue output value. An instantaneous excess bandwidth signal has a value of 1 if there is excess bandwidth and is otherwise 0 if there is no excess bandwidth. In an alternate embodiment, the instantaneous excess bandwidth signal for a particular pipe is logically ANDed with one or more additional excess bandwidth signals to form a composite instantaneous excess bandwidth signal. In response to the existence of excess queue bandwidth, a flow rate of a pipe is linearly increased while in response to a lack of excess queue bandwidth, the flow rate of the pipe is exponentially decreased.