A method and apparatus for distributed load multiplexing of multiple encoded signals over a shared communication path include processing that begins by receiving a 1.sup.st encoded signal having a 1.sup.st varying relative bit rate. The processing continues by receiving a 2.sup.nd encoded signal having a 2.sup.nd varying relative bit rate. For example, the 1.sup.st and 2.sup.nd encoded signals may be an MPEG encoded signal including a plurality of I frames, B frames and P frames. The processing continues by aligning multiplexing of the 1.sup.st and 2.sup.nd encoded signals based on reducing cumulative peak bit rates of the 1.sup.st varying relative bit rate and the 2.sup.nd varying relative bit rate. For example, the 2.sup.nd encoded signal may be delayed via buffering to ensure that the I frames of the 1.sup.st and 2.sup.nd encoded signals are misaligned.