Method and system for routing fiber channel frames using a fiber channel switch element is provided. The method includes, inserting a time stamp value in a fiber channel frame that is received at a receive segment of the fiber channel switch element; determining if a timeout occurs after a frame arrives at a receive buffer; and processing the frame if the timeout occurred. The method also includes, determining if a delta time value, which provides an accumulated wait time for a frame, is present in frame data; subtracting the delta time stamp value from a global time stamp value and using the resulting time stamp value to determine frame timeout status in the fiber channel switch element. A timeout checker circuit declares a timeout after comparing a time stamp value that is inserted in a fiber channel frame with a programmed time out value and global counter value.