A new rate-based active queue management (AQM) algorithm, called Yellow, is proposed in the paper. Yellow uses the load factor (link utilization) as a main merit to manage congestion. To improve congestion control performance, a queue control function (QCF) is introduced as a secondary merit. The sufficient condition for globally asymptotic stability is presented based on Lyapunov theory. Furthermore, the principle for parameter settings is given based on the bounded stable conditions. We then illustrate that Yellow outperforms the recently proposed AQM algorithms in terms of link utilization, packet loss and robust performance through extensive simulations.