A method and system for regulating packet flow to a downstream entity capable of forwarding packets to a plurality of intermediate destinations. The method includes maintaining a database of queues, each queue in the database being associated with packets intended to be forwarded to a corresponding one of a plurality of final destinations via a corresponding one of the intermediate destinations. Each queue in the database is further associated with a state that is either active or inactive. Upon receipt of a message from the downstream entity indicating a reduced (increased) ability of a particular one of the intermediate destinations to accept packets intended to be forwarded to a particular one of the final destinations, the method provides for rendering inactive (active) the state of the queue associated with packets intended to be forwarded to the particular final destination via the particular intermediate destination.