Efficient congestion control in a tunneled network

A method of congestion control implemented by a sender over a network link that includes a router having a queue. During a first state, information is received from a receiver. The information comprises an estimated maximum bandwidth for the link, a one-way transit time for traffic over the link, and an indication whether the network link is congested. In response to the link being congested, the sender transitions to a second state. While in the second state, a sending rate of packets in reduced, in part to attempt to drain the queue of data packets contributed by the sender. The sender transitions to a third state when the sender estimates that the queue has been drained of the data packets contributed. During the third state, the sending rate is increased until either the sender transitions back to the first state, or receives a new indication that the link is congested.