*Fling!* *Thwap!*
After some trying out different solutions, I found a nice way to shoot the cable instead of magically making it appear.
I'm simply Lerping the end of the cable between the ship and crate, but since I'm making the engine from scratch I had to program my own Lerp function first.

Since I'm only moving the end point of the cable, the rest of the cable will follow physics naturally.
The result is very satisfying. I can't stop shooting cables left and right.