A procedure for managing network traffic, and a system that operates in accordance with the procedure. Performance monitoring data is received from multiple network elements that define one or more paths along a network tunnel. The performance monitoring data includes data on network utilization. There is a detection of whether network utilization through the network tunnel exceeds an overflow threshold or an underflow threshold based on the performance monitoring data. A new path and new network elements are determined for the network tunnel, and instructions are transmitted to the network elements on the network to implement the new path.