I downloaded pokeradar to make this visual clear to see http://prntscr.com/f7ds0n

But as you can see these loots are being generated VERY close together. In the config though....
[*]PokeLoot {
# Allow Hidden Grottos to spawn in the world.
spawnGrotto=false
# Allows invisible PokeChests to spawn around the world randomly.
spawnHidden=false
# Default spawn mode (FCFS=0, PL1D=1, PUD=2, TIMED=3). FCFS = First Come First Serve, only one player can loot chest, then chests vanishes. PL1D = Player 1 Drop, chest gives one drop per person. Chest remains for others to use once each. PUD = Player Unlimited Drops, chests can be used infinitely by all players. TIMED = Each player allowed to loot again after specified time interval (individual timers). Chest remains after looting.
spawnMode=0
# Allows normal visible PokeChests to spawn around the world randomly.
spawnNormal=true
# Chest spawn rate. 0: 1 per 64 chunks. 1: 1 per 32 chunks. 2: 1 per 18 chunks. 3: 1 per 10 chunks
spawnRate=0
# Sets frequency that a player can reuse a timed loot chest (both placed in Creative and naturally spawned) if set to TIMED. Time conversions: one hour = 3600 seconds, one day = 86400 seconds, one week = 604800 seconds.
timedLootReuseSeconds=86400
}

its meant to spawn 1 per 64 chunks? so why are they spawning this many in 1 area all over the map?

http://prntscr.com/fdqdej http://prntscr.com/fdr0w8 here are some more examples of what is happening.

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