Matti Vanhanen (centre), Finland's prime minister, said Thursday he feared that a nationwide stevedore strike might last long given the gulf between the Transport Workers' Union (AKT) and the port operators.

The strike began early on Thursday after last-ditch arbitration talks failed late on Wednesday.

Mr Vanhanen issued an appeal to both sides to settle their row and warned of dire consequences of a protracted strike.

"This is a serious situation," he added.

"There is no question that if this became protracted society would gradually come to a standstill."

Mr Vanhanen refused to be drawn when asked to rate the union's actions.

"This is a legal strike, but a solution must be found for this sort of thing. The losses suffered by the nation's wellbeing each day are certainly unnecessary."

The strike is expected to stop about 80 per cent of the country's foreign trade.

STT