An apparatus and method for efficient hashing uses both an identifying portion of a data packet, e.g., source and destination ID, and an identifying value of the node, e.g., the IP address of the node, to generate a hash result. By inserting a unique value into the hash operation at each node, the invention effectively provides for a different hash implementation at each node. As a result, in situations where multiple paths or multiple links within a path are available to forward packets, traffic can be split over the multiple paths and links. Inefficient utilization of network links found in prior systems which use the same hash operation at each node are eliminated.