The continuous increase of traffic in the network can easily lead to unbalanced traffic, network congestion, and thus affect the users' experience. The Optimizing Open Shortest Path First (OSPF) Weights (OPW) algorithm is generally employed by Internet Service Provider (ISP) to deal with network congestion. However, there are three problems in this algorithm:1) real traffic matrix is needed; 2) network oscillation is easily to be led; 3) OPW has been proven to be a Non deterministic Ploynomial (NP) problem and requires to be solved by centralized approach. Aiming at the above problems of OPW algorithm, a new Distributed Load Balancing algorithm based on Hop-by-hop computing (DLBH) was proposed. Firstly, virtual traffic was set for all nodes. Then, the cost of all links was calculated based on the virtual traffic. Finally, the optimal routing was calculated using distributed algorithm. DLBH uses a distributed approach to solve the network congestion problem, while OPW can only use a centralized approach to deal with the network congestion problem. Therefore, the scalability of DLBH is superior to the scalability of OPW. Theoretical analysis shows that, the time complexity of DLBH is much less than that of OPW. The experimental results show that, the maximum link utilization of DLBH is significantly lower than that of OPW algorithm, which greatly reduces network congestion.