Just had a bit of a fight where we ended up having tons and tons of loot in the water near by, it ended up making the server so laggy it was insane to try to do anything.
I wonder if it would be a good idea to do what many other games do and "combine" chests into 1 chest when there are huge amouts of them. So a 8 captains chests could be merged into one that says "Captains chest (8)" and you can pick up from the pile.
I would assume this would drasticly help with the required calculations on all the floating loot and help improve gameplay stability around hundreds of floating chests.*
The entire loot pile also caused the fights around the loot (be it on ships or not) be annoying as everyone was experiencing 2-5 times longer black screens after respawns. I hope this might also help with that issue.