A system and a method are described herein which provide for congestion handling in a packet switched network domain. In case of congestion, overload is measured by a core node, the data packets in proportion to the overload are marked and the signaled overload is stored. At least one egress node receives marked and not marked packets, decodes and counts the overload from the marked packets in a counting interval. Congestion report messages are sent to ingress nodes where flows are terminated.