A method and apparatus for network routing in packet-based networks which advantageously takes traffic conditions into account dynamically in determining the "best route" for routing a packet to its intended destination. Illustratively, a potential function is employed whereby hypothetical electrostatic potential values are calculated at each node or link of a network, and the packets are routed in accordance with these potential function values (e.g., in the direction of the lowest neighboring value). The potential function values may be advantageously calculated based on queue lengths at the various nodes (or links) in combination with a minimum-cost distance calculated to the packet's intended destination.